Anheuser-Busch InBev Companies, Inc reported the following operating information for a recent year. In addition assume that Anheuser-Busch InBev sold 200 million barrels of beer during the year. Assume that variable costs were 75% 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 $225 million
A) compute the break-even number of barrels for the current year. Note: 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.
1 answer
1256895