Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions of dollars): Net sales $47,063 Cost of goods sold $18,756 Selling, general and administration 12,999 $31,755 Income from operations $15,308* *Before special items In addition, assume that Anheuser-Busch InBev sold 400 million barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that Anheuser-Busch InBev expects pricing, variable costs per barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $300 million. When computing the cost per unit amounts for the break-even formula, round to two decimal places. If required, round your final answer to one decimal place. a. Compute the break-even number of barrels for the current year. fill in the blank 1 million barrels b. Compute the anticipated break-even number of barrels for the following year. fill in the blank 2 million barrels
Break-Even Sales
Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions of dollars):
| Net sales | $47,063 |
| Cost of goods sold | $18,756 |
| Selling, general and administration | 12,999 |
| $31,755 | |
| Income from operations | $15,308* |
| *Before special items |
In addition, assume that Anheuser-Busch InBev sold 400 million barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that Anheuser-Busch InBev expects pricing, variable costs per barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $300 million.
When computing the cost per unit amounts for the break-even formula, round to two decimal places. If required, round your final answer to one decimal place.
a. Compute the break-even number of barrels for the current year.
fill in the blank 1 million barrels
b. Compute the anticipated break-even number of barrels for the following year.
fill in the blank 2 million barrels
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