BreakEven Sales
MolsonCoors Brewing Company TAP reported the following operating information for a recent year in millions:
Sales $
Cost of goods sold
Gross profit $
Marketing, general, and admin. expenses
Operating income $
Before special items
Assume that MolsonCoors sold million barrels of beer during the year, variable costs were of the cost of goods sold and of marketing, general, and administrative expenses, and that the remaining costs are fixed. For the following year, assume that MolsonCoors 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 $ million.
Round intermediate calculations to the nearest cent and the final answers to the nearest whole barrel. Do not round to the nearest million.
a Compute the breakeven sales barrels for the current year.
fill in the blank
barrels incorrect
b Compute the anticipated breakeven sales barrels for the following year.
fill in the blank
barrels incorrect
