Cost Behavior Analysis at PepsiCo

Requirements:

1. Classify costs into fixed and variable categories for PepsiCo's bottling operations.

Cost Element	Amount ($)
Fixed Costs	18,000,000
Variable Costs	700,000 per month

2. Calculate the contribution margin and contribution margin ratio for different beverage lines.
3. Determine the breakeven point in units and dollars based on different pricing strategies ($4, $6, and $8 per bottle).
4. Recommend pricing and cost control strategies to maximize profitability during peak and off-peak seasons.