# Question

Molson-Coors Brewing Company reported the following operating information for a recent year (in millions):

Net sales ............... $3,254

Cost of goods sold ............ $1,812

Marketing, general, and admin. Expenses .. 1,013

$2,825

Income from operations ........ $ 429

Assume that Molson-Coors sold 30 million barrels of beer during the year, variable costs were 75% of the cost of goods sold and 40% 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 $40 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.

Net sales ............... $3,254

Cost of goods sold ............ $1,812

Marketing, general, and admin. Expenses .. 1,013

$2,825

Income from operations ........ $ 429

Assume that Molson-Coors sold 30 million barrels of beer during the year, variable costs were 75% of the cost of goods sold and 40% 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 $40 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.

## Answer to relevant Questions

Currently, the unit selling price of a product is $80, the unit variable cost is $64, and the total fixed costs are $420,000. A proposal is being evaluated to increase the unit selling price to $84.a. Compute the current ...Using the data for Cabinet Inc. in Exercise 11-17, (a) Determine the maximum possible operating loss, (b) Compute the maximum possible income from operations, (c) Construct a profit-volume chart, and (d) Estimate the ...Mystique Apparel Co. manufactures a variety of clothing types for distribution to several major retail chains. The following costs are incurred in the production and sale of blue jeans:a. Brass buttonsb. Consulting fee of ...Aquarius Games Inc. has finished a new video game, Triathlon Challenge. Management is now considering its marketing strategies. The following information is available:Anticipated sales price per unit .... $75Variable cost ...Balance sheet data for Otter Creek Company on December 31, the end of the fiscal year, are shown below.Prepare a comparative balance sheet for 2012 and 2011, stating each asset as a percent of total assets and each ...Post your question

0