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eBOOK Break-Even Sales Molson Coors Brewing Company (TAP) reported the following operating information for a recent year (in millions): Sales $11,003 Cost of goods sold
eBOOK Break-Even Sales Molson Coors Brewing Company (TAP) reported the following operating information for a recent year (in millions): Sales $11,003 Cost of goods sold (6,217) Gross profit $4,786 Marketing, general, and admin. expenses (3,032) Operating income $1,754 *Before special items Assume that Molson-Coors sold 240 million barrels of beer during the year, variable costs were 75% of the cost of goods sold and 35 of marketing, general, and administrative expenses, and that the remaining costs are fixed. For the following year, assume that Molson Coors expects pricing, variable conta per barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $50 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. barrels b. Compute the anticipated break even sales (barrel) for the following year. barrels
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