Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 26 Jul 2017 My Price 8.00

Anheuser-Busch Companies, Inc.

Anheuser-Busch Companies, Inc., reported the following operating information for a recent year (in millions):
Net sales $15,717.1
Cost of goods sold $10,165.0
Marketing and distribution 2,832.5
$12,997.5
Income from operations $2,719.6*
*Before special items

In addition, Anheuser-Busch sold 125 million barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 40% of marketing and distribution expenses. Assume that the remaining costs are fixed. For the following year, assume that Anheuser-Busch 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 $150 million. 
Rounding to the nearest cent:
a. Compute the break-even sales (barrels) for the current year.
b. Compute the anticipated break-even sales (barrels) for the following year.

Answers

Maurice Tutor
(5)
Status NEW Posted 26 Jul 2017 11:07 AM My Price 8.00

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