In addition, assume that Anheuser-Busch InBev sold 200 million barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 40% of selling, general and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that Anheuser-Busch InBev 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 $225 million.
a. 115377060
To determine the impact of the new distribution and general office facilities on Anheuser-Busch InBev's costs for the following year, we first need to calculate the total fixed costs for the current year.
Given that variable costs were 75% of the cost of goods sold and 40% of selling, general, and administration expenses, we can calculate the fixed costs as follows:
Fixed costs = Total costs - Variable costs
Let's break down the calculation step by step:
1. Cost of goods sold:
Assuming Anheuser-Busch InBev sold 200 million barrels of beer during the year, and variable costs were 75% of the cost of goods sold, we can calculate the variable costs for cost of goods sold:
Variable costs for cost of goods sold = 0.75 * Cost of goods sold
= 0.75 * 200 million barrels
2. Selling, general, and administration expenses:
Assuming variable costs were 40% of selling, general, and administration expenses, we can calculate the variable costs for selling, general, and administration expenses:
Variable costs for selling, general, and administration expenses = 0.40 * Selling, general, and administration expenses
3. Total variable costs:
We can calculate the total variable costs by summing the variable costs for cost of goods sold and selling, general, and administration expenses:
Total variable costs = Variable costs for cost of goods sold + Variable costs for selling, general, and administration expenses
4. Total costs:
To calculate the total costs, we need to know the variable costs per barrel and the fixed costs. However, you haven't provided the information regarding the variable costs per barrel and the fixed costs. Without these values, it is not possible to calculate the total costs.
5. Impact of new distribution and general office facilities on fixed costs:
You mentioned that the new distribution and general office facilities are expected to increase fixed costs by $225 million. This means that for the following year, Anheuser-Busch InBev's fixed costs will increase by $225 million compared to the current year.
Please provide the additional information (variable costs per barrel and fixed costs) so that we can calculate the total costs and estimate the impact of the new facilities on the costs for the following year.