Coca Cola Cost Analysis Essay - 3252 Words

COCA COLA COMPANY Research Project For ACC 412 Presented to: Overview of Coca-Cola Leading the beverage industry for the third consecutive year, Coca-Cola, a common household name known around the world, climbs to the 4th spot in Fortunes 50 Most Admired Companies in the world for year 2012. When it comes to a refreshing cold soda, who does not know of Coca-Cola? The company was established in 1886 in Atlanta, Georgia at the Jacobs Pharmacy soda fountain by pharmacist John Pemberton. In its humble beginning, a glass of this drink costed only five cents and only 9 glasses of Coca-Cola were sold each day. Since then, Coca-Cola has grown to be a multi-billion dollar company. Employing approximately 139,600†¦show more content†¦High-Low Method: The highest revenue is $12,737,000, and the lowest is $6,103,000. The highest GDP is $ 15,321,000, and the lowest is $13,759,000. From the y = mx + b formula (where y is Revenue and x is GDP), we have m = 4.247 and b = -52,331,287. Projection of Sales Revenue Equation: Revenue = 4.247 * GDP - 52,331,287 According to th e High-Low method, sales revenue and GDP has a positive relationship. This translates to revenue is increased when GDP is increased. For every dollar increase in GDP, sales revenue will increase by 4.247 dollars. 2. Simple Linear Regression Equation: Projection of Sales Revenue Equation: Revenue = 3.3679 * GDP - (3.978*107) The relationship between sales revenue and GDP is also positive: For each additional GDP in the country, the amount of sales revenue increases 3.3679 dollars. In other words, as GDP increases, the spending in the country also increases which results in the increase of sales revenue. Next we examine the relationship between sales revenue and real interest rate: Revenue = (4.169*107) – 2,791,339 * real interestShow MoreRelatedBargaining Power Of Buyer : Coca Cola724 Words   |  3 PagesBargaining Power of buyer: (Low) †¢ The individual buyer has no pressure on Coca-Cola (Porter’s Five Forces In Action: Sample Analysis of Coca-Cola). †¢ Large retailers have bargaining power because of the large order quantity. Consumer brand loyalty lessens the bargaining power (Porter’s Five Forces In Action: Sample Analysis of Coca-Cola). Bargaining Power of Supplier: (Low) †¢ The main ingredients for soft drink include carbonated water, phosphoric acid, sweetener, and caffeine. The suppliers areRead MoreCommon Size And Percentage Change Analysis1667 Words   |  7 Pagesï » ¿Common-size Income Statement Analysis The common-size income statement shows that Coca-Cola’s cost of goods sold to revenues percentage rose very slightly from 39.14% in 2011 to 39.32% in 2013. 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