Reference no: EM13615619

ABC company reported the following operating information for are cent year(in millionsths

L Netsales                                   14,935

Cost of goodssold                         8,983

Marketing anddistribution              2590            11,590

Income fromoperations                   3,362     

In addition ABC company sold 136 million barrels of product during the year. Assume that variable costs were 70% ofthe cost of goods sold and 45% of margeting anddistrubution expenses. Assume that the remaining costsare fixed. For the following year, assume that ABC Companyexpects pricing, variable costs per barrel, and fixed costs to remain constant, except that new distrubution and general office facilities are expected to increase fixed costs by $133million.  Round to the nearest cent.

A. Compute the break-even sales(barrels) for the currentyear.

B. Compute the anticipated break even sales(barrels) for the following year.