following operating infmi a EX 19 12 Break-even sales a recent year (in millions
ID: 2510384 • Letter: F
Question
following operating infmi a EX 19 12 Break-even sales a recent year (in millions): u Busch InBlev Companies, Ine:, reported the f $47,063 $18,756 RE EXCEL TEMPLATE Sales Cost of goods sold Selling, general and administration $31,755 $15,308* Income from operations Before special items y sold 400 million barrels of beer In addition, assume that Anheuser-Busch InBev sold 400 r variable costs were 75% of the cost of goods sold and 50% nd 50% of Assume that ing the year. selling, general, and administration expens es. Assume that the remaining costs are fixe the following year, assume that Anheuser-Busch InBev expects pricing, v and fixed costs to remain constant, except that new distribution and ge expected to increase fixed costs by $300 million. r-Busch InBev expects pricing, variable cotd For general office facilities A. Compute the break-even number of barrels for the current year. (Note: For the per barrel and variable costs per barrel, round to the nearest cent. Round to place in millions of barrels.) or the selling price Pic one decimal the anticipated break-even number of barrels for the following year. (Round to B. Compute one decimal place in millions of barrels.)Explanation / Answer
a. Fixed Costs = 31755 - 20566.5 = 11188.5
Break even sales = Fixed Costs/ Contribution per unit
= 11188.5/66.24125
=169 million barrels (rounded off)
b. Fixed Costs for next year = 11188. 5+ 300 = 11488.5
Break even sales = Fixed Costs/ Contribution per unit
= 11488.5/66.24125
= 173 million barrels (rounded off)
Variable Costs Cost of goods Sold[18756*75%] 14067 Selling,general and administrative
[12999*50%] 6499.5 Total Variable Costs 20566.5 Variable Cost per unit
[20566.5/400] 51.41625
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