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.