Question
Molson-Coors Brewing Company reported the following operating information for a recent year (in millions): Net Sales: $3,516 Cost of goods sold: $ 2,049 Marketing,general, and
Molson-Coors Brewing Company reported the following operating information for a recent year (in millions):
Net Sales: $3,516
Cost of goods sold: $ 2,049
Marketing,general, and admin, expenses : 1,019
total $3.068
Income from operation $448*
*Before special items
Assume that Molson-Coors sold 35 million barrels of beer during the year, variable costs were 80% of the cost of goods sold and 45% 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 $75 million.
Round intermediate calculations to the nearest cent and the final answer 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 (barrels) for the following year. barrels
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