Wednesday, November 27, 2013

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.




                  




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