PepsiCo, Inc. is using Marginal Cost Accounting to analyze its production costs:

• Requirements:
  • Calculate the Marginal Cost per additional unit of beverage produced:
    • Variable Costs: $0.75
    • Fixed Costs: $20,000,000
• Implement Activity-Based Costing to allocate marketing and distribution costs.
• Evaluate the benefits of Standard Cost Accounting in managing raw material expenses.
• Discuss how each costing method influences pricing strategies and profitability in the beverage industry.

Marginal Cost Calculation:

Category	Amount ($)
Variable Costs	$0.75
Fixed Costs	$20,000,000
Total Cost	$20,000,000.75