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A company reported the following data for a recent year (in millions) Sales 39,758 COGS (16,447) Selling, gen & admin (10,578) Income from operations
A company reported the following data for a recent year (in millions) Sales 39,758 COGS (16,447) Selling, gen & admin (10,578) Income from operations 12,733 Assume that the firm sold 320 million barrels of beer during the year. Assume that variable costs were 70% of the COGS and 40% of selling. gen and admin expenses, and remaining costs are fixed, except the new distribution and other expenses are expected to increase fixed costs by $400 million the following year. What to do: a. Compute the break even number of barrels, round off to the nearest barrel b. Compute unit contribution margin, total variable costs, and total fixed costs
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