Compute the break-even sales or barrels for the current year

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Reference no: EM131211501

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

Reference no: EM131211501

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