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Anheuser- Busch InBev, reported the following operating info...


Anheuser- Busch InBev, reported the following operating information for a recent year (in millions): Net sales …………….. $ 36,297 Cost of goods sold …………. $ 16,151 Selling, general and administration …… 9,249 $ 25,400 Income from operations ………. $ 10,897* * Before special items 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. a. Compute the break- even number of barrels for the current year. For the selling price per barrel and variable costs per barrel, round to the nearest cent. Also, round the break- even to the nearest barrel. b. Compute the anticipated break- even number of barrels for the following year.