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Cost Behavior Analysis at Coca-Cola Company Requirements: Classify costs into fixed and variable categories for Coca-Cola Company's bottling operations. Cost Element Amount ($) Fixed Costs

Cost Behavior Analysis at Coca-Cola Company

Requirements:

  1. Classify costs into fixed and variable categories for Coca-Cola Company's bottling operations.

Cost Element

Amount ($)

Fixed Costs

15,000,000

Variable Costs

600,000 per month

  1. Calculate the contribution margin and contribution margin ratio for different beverage lines.
  2. Determine the breakeven point in units and dollars based on different pricing strategies ($3, $5, and $7 per bottle).
  3. Recommend pricing and cost control strategies to maximize profitability during peak and off-peak seasons.

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