2. Review Exhibit 5B Common Costs for Concentrate Manufacturers and Bottlers in the case, how may...
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2. Review Exhibit 5B "Common Costs for Concentrate Manufacturers and Bottlers" in the case, how may you explain the differences between the two industries' gross profit margin (% of Net Sales) using the five forces model? EXHIBIT 5B Common Costs for Concentrate Manufacturers and Bottlers (2009) Source: D. Yoffie and R. Kim, "Cola Wars Continue: Coke and Pepsi in 2010," Harvard Business School Case 9-711-462 (May 26, 2011). Net Sales Cost of Goods Sold Gross Profit Direct Marketing Expense Selling & Delivery Expense General & Admin Expense Operating Income Concentrate Manufacturer Dollars Per Case $0.98 $0.22 $0.76 $0.21 $0.00 $0.24 $0.30 % of Net Sales 100% 22% 78% 21% 0% 25% 32% Bottler Dollars Per Case $4.63 $2.67 $1.97 $0.45 $0.85 $0.31 $0.36 % of Net Sales 100% 58% 42% 10% 18% 6% 8% 2. Review Exhibit 5B "Common Costs for Concentrate Manufacturers and Bottlers" in the case, how may you explain the differences between the two industries' gross profit margin (% of Net Sales) using the five forces model? EXHIBIT 5B Common Costs for Concentrate Manufacturers and Bottlers (2009) Source: D. Yoffie and R. Kim, "Cola Wars Continue: Coke and Pepsi in 2010," Harvard Business School Case 9-711-462 (May 26, 2011). Net Sales Cost of Goods Sold Gross Profit Direct Marketing Expense Selling & Delivery Expense General & Admin Expense Operating Income Concentrate Manufacturer Dollars Per Case $0.98 $0.22 $0.76 $0.21 $0.00 $0.24 $0.30 % of Net Sales 100% 22% 78% 21% 0% 25% 32% Bottler Dollars Per Case $4.63 $2.67 $1.97 $0.45 $0.85 $0.31 $0.36 % of Net Sales 100% 58% 42% 10% 18% 6% 8%
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Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
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