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The Coca-Cola Company manufactures and distributes beverages globally. For September 2026, the company reports the following operating costs related to its production and distribution: Raw

The Coca-Cola Company manufactures and distributes beverages globally. For September 2026, the company reports the following operating costs related to its production and distribution:

  • Raw Material Costs: $50 million
  • Production Labor: $30 million
  • Bottling and Packaging Costs: $20 million
  • Distribution and Logistics: $15 million
  • Marketing and Promotions: $25 million

Required:

  • Calculate the total operating costs for The Coca-Cola Company.
  • Determine the cost per unit sold assuming 1 billion units sold.
  • Analyze the profitability of different product lines based on operating costs.
  • Discuss the cost behavior of operating costs in the beverage industry.
  • Recommend strategies to enhance profitability through cost management.

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