The Coca Cola Company hardly needs an introduction A line taken from the cover of a recent annual report says t all if you measured time in servings of Coca-Cola "a biltion Coca-Cola's apo was yesterday morning" On average bottlers. These bottlers then sell the finished bottles and cans of Coca Cola to the consumer every U.S. citizen drinks 363 8-ounce servings of Coca-Cola products each year. Coca Colas primary line of business is the making and selling of syrup to in the annual report of Coca-Cola the information shown below was provided THE COCA COLA COMPANY Management Discussion Our gross margpin decined to 6 percent thes year from 62 percent in the prior year primarily due to costs for materials such as sweeteners and packaging The increases Iin selling expenses) in the last two years were primarily due to higher marketing e We measure our sales volume in two ways: (1) galon shipments of concentrates and synups and (a) unit cases of finished product (bottles and cans of Coke sold by bottlers) expenditures in support of our Company's volume growth Answer the following questions a) Are sweeteners and packaging a vaiable cost or a fved cost What is the impact on the coneribution implications for profitability? eb) in your opnon are marketing expendures a foed cost variable cost or mined cost to The Coc-Cola Company? Give juttation %' you inte oo wheh 0, the two measures cited for measuring voume regresents the actty ndex as defned in ths chapter? Why mght CoQ-cou use two dmerent measures? margin of an increase in the per unit cost of sweeteners or packaging? What are the