Coke and the Numbers!

Production costs of Coke could be divided into two categories: fixed costs and variable costs. Fixed production cost of one small can of coke is approximately 6 cents while the variable production costs that include shipping and handling often rise to 19 cents.

The price for which the coke is sold in stores is somewhere between 45 to 60 cents per small can of coke.

Therefore, the revenue, which retailers get from selling one small can of coke is around 30 cents. 

This suggests that the profit the retailers make is in a range of 15 - 30 cents.

                  

Production Methods

Job Production 
-motivates the workers

• Wedding rings: The possible strength is that it meets the customer's exact requirements.
• Made-to-measure suits or dresses: Since the suit or dress were made only for this customer, it fits him/her perfectly. The product is unique and customized.
• Aston Martin car: each engine is hand built and carries a plate with engineer's name on it, which makes it look unique.

Batch Production

-allows the firm to use division labor

• School uniforms or jerseys: Since Batch production produces a limited number of identical products, it is very beneficial for sport teams or schools where all members should look alike. The product can be altered depending on customer needs.
• Production of identical bread rolls: It creates an image of precision and therefore it attracts many consumers.
• Designing and implementing an advertising campaign: There are several stages of batch production that allow costumers to alter the advertisement. Once again, it makes the advertisement to look unique.