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(Solved by Expert Tutors) ?Break-Even Sales

Anheuser-Busch InBev Companies, Inc., repo


Break-Even Sales

Anheuser-Busch InBev Companies, Inc., reported the following operating information

for a recent year (in millions of dollars):

In addition, assume that Anheuser-Busch InBev sold 300 million barrels of beer during the year. Assume that?variable costs?were 70% of the cost of goods sold and 40% 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 $350 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 the nearest whole barrel.

a. ?Compute the break-even number of barrels for the current year.?
?barrels

b. ?Compute the anticipated break-even number of barrels for the following year.
?barrels?

 


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Apr 19, 2020

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