Molson Coors Brewing Company reported the following operating information for a
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
$3,068
Income from operations ........... $ 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.
Rounding to the nearest cent:
a. Compute the break-even sales (barrels) for the current year.
b. Compute the anticipated break-even sales (barrels) for the following year.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help