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Break-Even Sales 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) $1,404

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Break-Even Sales 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) $1,404 Gross profit 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 Moson-Coors expects pricing, variable costs per barrel, and feed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $100 million Round Intermediate calculations to the nearest cent and the final answers to the nearest whole barrel. (Do not round to the nearest million) a. Compute the break-even sales barrels) for the current year 94 X barrels b. Compute the anticipated break-even sales (barrels) for the following year 101.5 X barrels Fixed costs divided by the unit contribution margin equals break-even sales

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