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Business & Marketing
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Costs of Production, Overall Market, and Recommendation (Essay Sample)


The purpose of this milestone is for students to explore the various costs their firm faces and to describe their firm's market. Using the concepts and tools
developed in Modules Four and Five, students will analyze the fixed and variable costs of their firm, how those costs have changed over time, and how those
changes have impacted their firm's overall health and sustainability. In analyzing their firm's market, students will detail the extent of their firm's market power
and their firm's ability to influence the market. Students will also describe major trends in the market, specifically concerning new products, technologies, and
new entrants. Students can further determine the future health of their firm to inform their final recommendations by examining their firm's place within the
Prompt: Submit a draft of the Costs of Production (Section IV), Overall Market (Section V), and Recommendation (Section VI) of your research paper, including
all critical elements listed below. You will review your firm's financial reports and other relevant data sources to collect and analyze cost information for your firm
over the past five or so years. Using real data and the economic tools developed in Module Four, you will analyze your firm's profitability and how costs impact its
growth. Additionally, you will find data on your firm's competitors in order to detail your firm's place within the market currently and over the past five or so
years. Lastly, you will develop a recommendation for how the firm can manage its future production.


Costs of Production (Section IV), Overall Market (Section V), and Recommendation (Section VI)
Institutional Affiliation:
Costs of Production (Section IV), Overall Market (Section V), and Recommendation (Section VI)
Coca-Cola’s Cost of Production and Profitability
Profit Margins
Gross Profit = Total sales - Cost of sales.
In examining my corporation's sustainability, the Coca-Cola Company, gross profit is essential because it shows how well the management uses materials and labor in the manufacturing process. The materials and labor form part of the variable costs, which impact the firm's overall health and sustainability. More precisely, this information can be used to calculate gross profit margin. The following are the Coca-Cola's gross profits for the previous five years:
2012- $35.119 billion - $12.693 billion = $22.426 billion.
2013 - $46.542 billion - $18.216 billion = $28.326 billion.
2014 - $45.998 billion - $17.889 billion = $28.109 billion.
2015 - $44.294 billion - $17.482 billion = $26.812 billion.
2016 - $41.863 billion - $16.465 billion = $25.398 billion.
Gross Profit Margin = Gross Income / Sales.
According to O'Neill, Sohal, and Teng (2016), the gross profit margin is the amount of a business's production and distribution efficiency in the course of the manufacturing process. The gross profit conveys to investors the percentage of total revenue or sales left after deducting the total cost of goods and services sold (Bigliardi and Bottani, 2014). A business establishment that claims a higher gross profit margin than its opponents and industry is more efficient. A

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