Accounting In Headlines: Read Wall Street Journal Article

(Student’s name)
(Professor’s name)
Accounting, Finance, SPSS
11 May 2017
Anheuser-Busch and Elysian
The sales revenue in 2015 is flat, but there will be an increase in revenue because of the price they give for the 6-pack beer of Elysian. Despite the costlier ingredients, the market is aware of the quality of craft beer, which they have gotten used to even in the previous years. It is wise to consider that consumers will prefer it more over the old beer in the market. According to a list found on Beer Advocate (2017), the Avatar Jasmine IPA is one of their highest rated beers. On the other hand, Anheuser-Busch has Budweiser as their highest rating beer.
The likely thing that will happen to the break-even sales volume of Anheiser Busch is that it is going to increase due to the higher demand of consumers because of the switch they did. In 2017, Anheuser-Busch gave an operating information and they sold above 200 million barrels of beer within a year. Based on Chegg study (2017), this is assuming that there are 70% variable cost of goods and 40% is from selling, and expenses in general administration. The remaining costs are already fixed in the coming years, it is easy to assume that the pricing for the variable cost and fixed cost per barrel will remain the same. This is with an exception of the new distribution and facilities cost are going to add $400 million to the fixed cost. Furthermore, the replacement of the Budweiser beer sales with Elysian is going to decrease the sales volume that is needed for the company to reach break-even.
According to the Fearless Critic (2017), ...