Question: SECTION B (ANSWER ANY TWO) Question 2 (a) The Coca-cola Company is an American multinational corporation, and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates

 SECTION B (ANSWER ANY TWO) Question 2 (a) The Coca-cola Company

SECTION B (ANSWER ANY TWO) Question 2 (a) The Coca-cola Company is an American multinational corporation, and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Atlanta, Georgia. In Ghana, the company was formed from a divestiture of Bottling Division of G.N.T.C in March 1995 and started operations on March 7, 1995 at the GNTC plant at Adjabeng. The new premises sited off the Spi rex Road, was commissioned in 1996. Since the divestiture, the Company has invested over JS$90 million in vehicles, glass bottles, plastic bottles, plastic crates, production and marketing equipment. In 1999, the Company embarked on an expansion phase, adding a second bottling line with associated infrastructure in Kumasi. Suppose Q1 units of Coca Cola are produced in Accra and Q2 units of Coca Cola are produced in Kumasi so that the production of Coca Cola on Ghana is Q = Q1 + Q2. In addition, suppose the demand function for Coca Cola is given as: Q = 400 - 0.2P. The cost of producing Coca Cola at the Accra and Kumasi plants are: TC1 = 100 + 50? and TC2 = 120 + 1603 respectively. i. Determine the profit maximizing amount of Coca Cola to be produced in each of the two plants. 9 marks ii. Find the optimal price of Coca Cola and the company's maximum profit. 3 marks

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