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Category > Accounting Posted 19 Aug 2017 My Price 11.00

Benatar Company

Break-even sales and sales to realize income from operations

 

For the current year ended March 31, Benatar Company expects fixed costs of $1,250,000, a unit variable cost of $140, and a unit selling price of $100.

 

a.     Compute the anticipated break-even sales (units).

 

b.     Compute the sales (units) required to realize income from operations of $150,000.

 

Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in  millions):

 

 

 

Sales

$39,758

Cost of goods sold

$16,447

Selling, general and administration

   10,578

 

Income from operations

$27,025

$12,733*

*Before special items

 

 

In addition, assume that Anheuser-Busch InBev sold 320 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 $400 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.

 

Answers

(5)
Status NEW Posted 19 Aug 2017 11:08 PM My Price 11.00

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