1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tema [17]
3 years ago
5

Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year:

Business
1 answer:
JulsSmile [24]3 years ago
5 0

Answer:

1. 6,833 barrels.

2. 7,039 barrels.

Explanation:

Requirement 1

We know,

Break-even number of barrels = Fixed cost ÷ Contribution Margin per unit

Given,

Contribution Margin per unit = Sales price per unit - Variable expense per unit

or, Contribution Margin per unit = (Total sales ÷ Sales volume) - [(75% of the cost of goods sold + 50% of selling, general, and administrative expenses) ÷ 41,000]

or, Contribution Margin per unit = ($5,248,000 ÷ 41,000) - [($1,312,000 × 75%) + (656,000 × 50%) ÷ 41,000]

or, Contribution Margin per unit = $128 - [($984,000 + 328,000) ÷ 41,000]

or, Contribution Margin per unit = $128 - ($1,312,000 ÷ 41,000)

or, Contribution Margin per unit = $128 - $32 = $96

And, Fixed cost = Total cost - Variable expense = (Cost of goods sold + Selling, general, and administrative expenses) - Variable expense

Fixed cost = ($1,312,000 + 656,000) - $1,312,000 = $656,000

Therefore,

Break-even number of barrels = $656,000 ÷ $96 = 6,833 barrels.

Requirement 2

Again,

Break-even number of barrels = Fixed cost ÷ Contribution Margin per unit

Given,

As Anheuser-Busch InBev expects to increase the fixed expenses by $19,700, the new fixed cost = $656,000 (<em>from requirement 1</em>) + $19,700

Fixed cost = $675,700

Given,

Contribution Margin per unit = $96 (<em>From requirement 1</em>)

Therefore,

Break-even number of barrels for the following year = $675,700 ÷ $96

Break-even number of barrels = 7,039 (rounded to nearest number).

You might be interested in
Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division’s return o
baherus [9]

Answer:

NPV: $180,285.49

IRR: 21.336%

simple rate of return: 72.13%

Explanation:

6,100,000 investment

contribution margin 3,000,000

fixed expense:       <u>     900,000  </u>

EBITA                         2,100,000

We will calculate the NPV without the depreciation, as the depreciation is the distribution of the investment cost over the project life.

If we include the depreciation we will be counting the investment amount twice. Entirely at Time 0  and then subtracting on each cash inflow.

We will calculate the NPV at 20% as is the company's discount rate. Even if the current division returns are in 24% as the company accepts project which yields 20%.

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 2,100,000

time 5 years

rate 20% = 20/100 = 0.2

2100000 \times \frac{1-(1+0.2)^{-5} }{0.2} = PV\\

PV $6,280,285.49

NPV = PV of cash inflow - investment

6,280,285.49 - 6,100,000 = 180,285.49

<u>the IRR:</u>

The internal rate of return is the rate at which the NPV of a priject is zero.

We calculate this using excel formula IRR

or a financial calculator

it could also be done with trial and error using the PV tables.

<u>I will explain you in Excel</u>

FIrst, you write the inflow and outflow per year:

-6,100,000

2,100,000

2,100,000

2,100,000

2,100,000

2,100,000

then we write on another cell:

=IRR(

then, select the cells

and press enter

21.336%

<u>the simple rate of return:</u>

(total return - investment) / investment

(2,100,000 x 5 - 6,100,000) / 6,100,000 =

4,400,000 / 6,100,000 = 0.721311475 = 72.13%

7 0
3 years ago
According to the multiple levels of analysis anchor:
nirvana33 [79]

ob topics typically relate to the individual, team and organizational levels of analysis.

7 0
2 years ago
why would it be inefficient for a producer to start producing audio cassettes instead of CD'S today? what resources would be was
patriot [66]

Explanation:

The consumer won't want to buy cassettes because most music players are cd players if not even that. Plastic, time, money, and labor would be wasted.

8 0
2 years ago
A marginal external cost of a product is equal to
Lyrx [107]

Answer:

the answer is D hope that helps you out

4 0
2 years ago
You are paying 11% interest on a credit card balance of $2,000. Which of the following best estimates the interest you are payin
Sloan [31]
<span>You are paying 11% interest on a credit card balance of $2,000. 
=> 2 000 * .11 =  220 dollars is the interest.
Next is to total or sum up the amount to be paid.
=> 2 000 + 220 = 2220 dollars 

</span>
5 0
3 years ago
Other questions:
  • Given the industry structure in the automobile business, entering the auto manufacturing industry doesn't seem advisable. Yet Te
    12·1 answer
  • Spalkyn, a footwear company, allows its customers to shop online on its website or mobile app or at its physical stores. At the
    6·1 answer
  • Which term describes the economy that revolves around providing intangible services such as restaurant work, health care provisi
    6·1 answer
  • Which of the following is NOT a proposition of the Heckscher-Ohlin model? Countries will completely specialize in the product in
    6·1 answer
  • Why are the three separate occupations of plumbers, pipefitters, and steamfitters grouped together by the Department of Labor?
    6·1 answer
  • The Nelson Company's radio division currently is purchasing transistors from the Charlotte Co. for $3.50 each. The total number
    8·1 answer
  • Adams Co. reports the following balance sheet accounts as of December 31. Salaries payable $ 6,800 Retained earnings $ 58,000 Bu
    14·1 answer
  • Tim’s credit card has an APR of 24 percent. What is the periodic rate for this credit card?
    10·1 answer
  • Company X has 2 million shares of common stock outstanding with a book value of $2 per share. The stock trades for $3 per share.
    7·1 answer
  • 10 POINTS PLEASE HELP ASAP
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!