are sweetter and packaging a variable cost of a fixed cost ? what is this the impact on the contribution margin of incease in per unit of sweetners or packaging? what is implictions of profiatlity ?

Case\t1\t(Real-World\tFocus) The\tCoca-Cola\tCompany\thardly\tneeds\tan\tintroduction. A\tline\ttaken\tfrom\tthe\tcover\tof\ta\trecent\tannual\treport says\tit\tall: If\tyou\tmeasured\ttime\tin\tservings\tof\tCoca-Cola,\t\"a\tbillion\tof\tCoca-Cola's\tago\twas\tyesterday\tmorning.\" On\taverage,\tevery\tU.S.\tcitizen\tdrinks\t363\t8-ounce\tservings\tof\tCoca-Cola\tproducts\teach\tyear. Coca-Cola's\tprimary line\tof\tbusiness\tis\tthe\tmaking\tand\tselling\tof\tsyrup\tto\tbottlers. These\tbottlers\tthen\tsell\tthe\tfinished\tbottles\tand cans\tof\tCoca-Cola\tto\tthe\tconsumer. The\tinformation\tbelow\tis\ttaken\tfrom\tthe\tannual\treport\tof\tCoca-Cola: Required: Answer\tthe\tfollowing\tquestions: 1. Are\tsweeteners\tand\tpackaging\ta\tvariable\tcost\tor\ta\tfixed\tcost?\tWhat\tis\tthe\timpact\ton\tthe\tcontribution margin\tof\tan\tincrease\tin\tthe\tper\tunit\tcost\tof\tsweeteners\tor\tpackaging? What\tare\tthe\timplications\tof profitability? 2. In\tyour\topinion,\tare\tCoca-Cola's\tmarketing\texpenditures\ta\tfixed\tcost,\tvariable\tcost\tor\tmixed\tcost? Give justification\tfor\tyour\tanswer. 3. Which\tof\tthe\ttwo\tmeasures\tcited\tfor\tmeasuring\tvolume\trepresents\tthe\tactivity\tindex? Why\tmight\tCocaCola\tuse\ttwo\tdifferent\tmeasures? Case\t2\t(Ethics) Hanson,\tInc.\trequires\tits\tmarketing\tmanagers\tto\tsubmit\testimated\tcost-volume-profit\tdata\ton\tall\trequests\tfor new\tproducts,\tor\texpansions\tof\ta\tproduct\tline. Nancy\tStephens\tis\ta\tnew\tmanager.\tHer\tcalculations\tshow\ta\tfixed cost\tfor\ta\tnew\tproject\tat\t$100,000\tand\ta\tvariable\tcost\tof\t$5.\tSince\tthe\tselling\tprice\tis\tonly\t$15\tfor\tthe\tproposed product,\t10,000\tunits\twould\tneed\tto\tbe\tsold\tto\tbreak\teven.\tThat\tis\tapproximately\ttwice\tthe\tvolume\testimate\tfor the\tfirst\tyear.\tShe\tshares\ther\tdismay\twith\tPatti\tPatterson,\tanother\tmanager. Patti\tstrongly\tadvises\ther\tto\trevise her\testimates.\tShe\tpoints\tout\tthat\tseveral\tof\tthe\tcosts\tthat\thad\tbeen\tclassified\tas\tfixed\tcosts\tcould\tbe\tconsidered variable,\tsince\tthey\tare\tstep\tcosts\tand\tmixed\tcosts.\tWhen\tthe\tdata\thas\tbeen\trevised\tclassifying\tthose\tcosts\tas variable\tcosts,\tthe\tproject\tappears\tviable. Required: 1. Who\tare\tthe\tstakeholders\tin\tthis\tdecision? 2. Is\tit\tethical\tfor\tNancy\tto\trevise\tthe\tcosts\tas\tindicated?\tBriefly\texplain. 3. What\tshould\tNancy\tdo? Case\t3\t(Communication) For\ttwo\tyears,\tAnnette\tLarson\thas\tbeen\tthe\tmanager\tof\tthe\tproduction\tdepartment\tof\ta\tcompany\tmanufacturing toys\tmade\tof\tplastic-coated\tcardboard.\tOne\tof\tthe\ttoys\tis\ta\tpaper\tdoll,\twhose\t"clothes"\tare\tmade\tof\tacetate, and\tstay\ton\tthe\tdoll\twith\tstatic\telectricity.\tThe\tcompany's\tsales\twere\tmainly\tto\tlarge\teducational\tinstitutions until\tlast\tyear,\twhen\tthe\tdolls\twere\tsold\tfor\tthe\tfirst\ttime\tto\ta\tlarge\tdiscount\tretailer.\tThe\tdolls\twere\tsold\tout immediately, and enough orders were received to keep the department at full capacity for the immediate future. The\tfixed\tcosts\tfor\tthe\tdepartment\tare\t$50,000,\twith\t$1\tper\tunit\tvariable\tcosts.\tA\tpaper\tdoll\tand\tone set of clothes sell for $3. The maximum volume is 80,000 units. With the increased volume, Ms. Larson is considering\ttwo\toptions\tto\timprove\tprofitability.\tOne\twould\treduce\tvariable\tcosts\tto\t$0.75,\tand\tthe\tother\twould reduce\tfixed\tcosts\tto\t$35,000. Required: Given\tthe\tfact\tthat\tsales\tare\tincreasing,\tmake\ta\tshort\t(one\tparagraph)\trecommendation\tto\tMs.\tLarson\tabout which\toption\tshe\tshould\tchoose.\tSupport\tyour\trecommendation\twith\ta\tcalculation\tshowing\ther\thow\tprofitability will\tchange\twith\teach\toption. Case\t4\t(Point\tof\tIndifference) Benzon\tCompany\tsells\ta\tproduct\tfor\t$20,\tvariable\tcosts\tare\t$8\tper\tunit,\tand\tfixed\tcosts\tare\t$32,000.\t(a)\tWhat\tis Dennis'\tbreak-even\tpoint\tin\tunits?\t(b)\tWhat\tis\tthe\tselling\tprice\tthat\tDennis\tmust\tcharge\tto\tearn\tan\t$8,000\tprofit selling 1,600 units? Furthermore, Benzon is considering new equipment that would increase fixed costs by $2,000\twhile\treducing\tunit\tvariable\tcosts\tby\t$1.60\tper\tunit. With\tthe\tgiven\tdate,\t(c)\tfind\tsales\tlevel\twhere\tthe company\tis\tindifferent\tbetween\tthe\ttwo\tcost\tstructures