Molson-Coors Brewing Company (TAP) reported the following operating information for a recent year (in millions):
Sales ................................................ $3,568
Cost of goods sold ............................... (2,164)
Gross profit ........................................... $1,404
Marketing, general, and admin expenses ..... (1,052)
Operating income... ............................... $ 352*
*Before special items.......................................
Assume that Molson-Coors sold 120 million barrels of beer during the year, variable costs were 70% of the cost of goods sold and 40% of marketing, general, and administrative expenses, and that the remaining costs are fixed. For the following year, assume that Molson-Coors 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 $100 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?