All categories

4 years ago

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

Business

1 answer:

JulsSmile [24]4 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 (from requirement 1) + $19,700

Fixed cost = $675,700

Given,

Contribution Margin per unit = $96 (From requirement 1)

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

Zoom call anyone im bored

Mrac [35]

Answer:

me i love zoom because i do it every day

Explanation:

8 0

3 years ago

Property, plant, and equipment (net) $3,200,000 Liabilities: Current liabilities $1,000,000 Note payable, 6%, due in 15 years 2,

nadya68 [22]

Answer:

a. Ratio of fixed assets to long-term liabilities

= Fixed assets x 100

Long-term liabilities

= $3,200,000 x 100

$2,000,000

= 160%

b. Ratio of liabilities to shareholders' equity

= Total liabilities x 100

Shareholders' equity

= $3,000,000 x 100

$5,000,000

= 60%

c. Asset turnover

= Sales

Total assets

= $18,750,000

$7,000,000

= 3 times

d. Return on total assets

= Net income x 100

Total assets

= $930,000 x 100

$7,000,000

= 13.29%

Explanation:

The ratio of fixed assets to long term liabilities equals fixed assets divided by long-term liabilities multiplied by 100.

Ratio of liabilities to stockholders' equity equals total liabilities divided by total stockholders' equity multiplied by 100. The total liability is equal to current liabilities plus long-term liabilities.

Asset turnover equals sales divided by total assets.

Return on total assets equals net income divided by total assets multiplied by 100.

4 0

3 years ago

for most homeowners, the most important financial benefit from owning a home is that it is:

mezya [45]

Most homeowners would agree that the most important financial benefit from owning their own home is the tax break. This is known as a tax shelter and allows for homeowners to avoid or lower their taxes. Owning a home reduces your taxable income and in large part due to interest rates and interest paid on an owned home.

7 0

3 years ago

What message is this price tag telling shoppers? (other than it is on sale)

KatRina [158]

It is saying that it was $9 and it was then marked down on sale for 7:00. The tag is also telling you the size.

3 0

2 years ago

The marginal physical product of labor is Group of answer choices the slope of the total output curve at the relevant point. the

VladimirAG [237]

Answer:

The slope of the total output curve at the relevant point.

Explanation:

A marginal physical product can be defined as the extra output which is being generated by using an extra input. This ultimately implies that, marginal physical product of labor refers to the change in the level of output that is generated from using an additional unit of labor.

Mathematically, marginal physical product of labor is given by the formula;

Marginal physical product of labor = ΔY/ΔL

Where, ΔY is the change in total physical output.

ΔL is the change in labor.

In the short run, when the number of workers are increased it would result in a diminishing marginal product with respect to the law of diminishing marginal returns.

The marginal physical product of labor is the slope of the total output curve at the relevant point.

For instance, if brainly producing 50 answers decides to employ one more tutor and is then able to produce 55 answers, the marginal physical product of labor is simply 5.

6 0

3 years ago