Assume that BeerBev sold 41 million barrels of beer during the year, that variable costs were 75% of the cost of goods sold and 50% of marketing, general and administration expenses, and that the remaining costs are fixed. For the following year, assume that BeerBev 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 $19.68 million.

Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year (in millions): Sales $6,560 Cost of goods sold $1,640 Gross profit $4,920 Marketing, general, and admin. expenses 492 Income from operations $ 4,428