Anheuser-Busch Companies, Inc., reported the following operating information for a recent year (in millions): Net sales $15,717.1
Question:
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.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted: