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Break-even sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year (in millions): In addition, assume that Anheuser-Busch InBev sold 500 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 administrative 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 $400 million. a. Compute the break-even number of barrels for the current year. In computing variable and fixed costs and per-barrel amounts, round to two decimal places. Round the break-even number of barrels to one decimal place. b. Compute the anticipated break-even number of barrels for the following year. Round to one decimal place in millions of barrels.

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Managerial Accounting

15th Edition
Carl Warren + 1 other
Publisher: South-Western College Pub
ISBN: 9781337912020
BuyFind

Managerial Accounting

15th Edition
Carl Warren + 1 other
Publisher: South-Western College Pub
ISBN: 9781337912020

Solutions

Chapter
Section
Chapter 6, Problem 12E
Textbook Problem

Break-even sales

Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year (in millions):

Chapter 6, Problem 12E, Break-even sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a

In addition, assume that Anheuser-Busch InBev sold 500 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 administrative 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 $400 million.

  1. a. Compute the break-even number of barrels for the current year. In computing variable and fixed costs and per-barrel amounts, round to two decimal places. Round the break-even number of barrels to one decimal place.
  2. b. Compute the anticipated break-even number of barrels for the following year. Round to one decimal place in millions of barrels.

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Chapter 6 Solutions

Managerial Accounting
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