If a store has a “buy one, get one free” sale and an item costs $10, what is the marginal cost of the second item?

Answers

Answer 1

Answer:

D). $0

Explanation:

Marginal cost is described as the 'increase in cost that accompanies a unit increase in the output.' It is characterized as the partial derivative of the cost function with respect to the output. It is calculated by the change in cost divided by the change in quantity. In the given case, the marginal cost for the second item would be $0 because it is for free and if we divide 0/1, we get 0. Thus, there is no additional cost for producing that extra good and hence, option D is the correct answer.


Related Questions

Jaheem's business sells a single product. The following information was gathered from Jaheem's records: Price $24.00 per unit Variable costs are 61% of sales price The company's fixed costs are $400,000 annually Current sales total is 41,000 units Target profit before tax $22,000 Budgeted sales total is 48,000 units By how much will profit increase with the sale of each unit in Jaheem's business

Answers

Answer:

See below

Explanation:

With regards to the above, Jaheem's business profit increase is calculated as

= Fixed cost + Desired profit/Contribution margin

Given that;

Fixed cost = $400,000

Desire profit = $22,000

Contribution margin = $9.4

= $400,000 + $22,000/($24 - $14.6)

= $422,000/$9.4

= $44,894

Therefore, increase on profit

= $44,894 - $22,000

= $22,894

Finished goods inventory at the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month's sales. Asian Lamp expects to sell the lamps for $25 each. January sales is projected at 16,000 lamps. In going from the sales budget to the production budget, adjustments to the sales budget need to be made for

Answers

Answer: b. finished goods inventories,

Explanation:

To be able to come up with the Production budget, the sales budget will need to be adjusted for finished goods inventories to come up with the total production figure.

For instance:

                                            Production Budget

Sales in units                                                                XXX

Add Ending finished goods inventories                    XXX

Less Opening finished goods inventories                (XXX)

Production units for period                                        XXX

Kidder Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $156,800, $195,200, and $217,600, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $28,800 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. The cash payments for manufacturing in the month of June are:___.
a. $294,000.
b. $235,200.
c. $183,200.
d. $381,500.

Answers

Answer:

Total cash disbursement June= $183,200

Explanation:

Giving the following formula:

Manufacturing costs:

May= $195,200

June= $217,600

We need to deduct the costs of depreciation, insurance, and property taxes. The first one is not a cash disbursement cost. The second and third are already paid.

Cash disbursement June:

Manufacturing costs June= (217,600 - 28,800)*0.75= 141,600

Manufacturing costs May= (195,200 - 28,800)*0.25= 41,600

Total cash disbursement June= $183,200

Why is efficiency an important economic goal?

Answers

Explanation:

Efficiency reduces hunger and malnutrition because goods are transported farther and quicker. Also, advances in efficiency allow greater productivity in a shorter amount of time. Efficiency is an important attribute because all inputs are scarce.

Efficiency is an important Economic goal because it reduces the cost of production, gives highest output with less input and aims at minimum wastage of resources which in return reduces cost of goods and services for consumers.

What is Efficiency?

Efficiency is the maximum level of performance that requires the fewest inputs and produces the greatest amount of output.

Economic efficiency is the distribution or allocation of all goods and factors of production in an economy to their most valued uses while reducing or eliminating waste.

What is Economic goal?

Every country in the globe strives to achieve specific goals in order to become an ideal and stable economy. Countries put a lot of effort towards achieving these objectives. Every nation faces unique problems brought on by many variables that impede its development and expansion.

Hence, governments try to retain certain targets and seek to reach a given degree of growth within a year. These objectives are known as macroeconomics objectives or Economic goal.

Economic growth, full employment, price stability, economic freedom, equity, efficiency, stable financial market are some of the Economic goals that a country strive to achieve to grow and develop as whole.

scarcity is one of the important factor that impacts the growth of the country and its goals. A type of resource's scarcity can reduce profitability, slow economic growth, and raise prices. Businesses modify their operations to be as effective as feasible given their conditions using their understanding of a resource's scarcity. efficiency plays vital role in using those scarce resources to produce more output, in this way efficiency is very useful and important in a country to achieve its economic goals.

Supporting answer

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A VC investor has invested $5 million in the preferred stock of a venture that is now being acquired for $50 million. The investment has a 2X liquidation preference . Alternatively the preferred stock is convertible into 25% of the common shares that would be outstanding prior to the acquisition. What is the best payoff the VC investor can get from the acquisition

Answers

Answer: $12.5 million

Explanation:

The best payoff the VC investor can get from the acquisition will be:

From the question, we've two options. The first option using the 2x Liquidation Preference will give a payoff of:

= 2 × $5 million

= $10 million

The second option using 25% of Common Shares will give a payoff of:

= 25% × $50 million

= 0.25 ÷ $50 million.

== $12.5 million

Therefore, the best Payoff is $12.5 Million.

Aulman Inc. has a number of divisions including a Furniture Division and a Motel Division. The Motel Division owns and operates a line of budget motels located along major highways. Each year, the Motel Division purchases furniture for the motel rooms. Currently, it purchases a basic dresser from an outside supplier for $40. The manager of the Furniture Division has approached the manager of the Motel Division about selling dressers to the Motel Division. The full product cost of a dresser is $29. While the Furniture Division has been operating at capacity (50,000 dressers per year) and selling them for $40 each, it expects to produce and sell only 40,000 dressers for $40 each next year. The Furniture Division incurs variable costs of $13 per dresser. The company policy is that all transfer prices are negotiated by the divisions involved.

Required:
a. What is the maximum transfer price?
b. Which division sets it?
c. What is the minimum transfer price?
d. Which division sets it?

Answers

Answer:

correct answer is A I hope it helped you

The management at BuyRite grocery stores wishes to estimate the amount of time that customers are spending, on average, in its stores and in a checkout line. The most obvious approach for determining this information is to simply record when a customer enters and exits the store. However, it is difficult to track the entering and exiting times of specific customers. We will look at the problem using an alternative approach. Over the past two weeks, the following data have been collected at BuyRite’s newest store during busy hours (this BuyRite is rather large and typically has 7 open checkout lines). For simplicity, let us assume that the overall capacity at checkout lines is higher than the arrival rate of customers into the store.
Average rate of customers entering store = 305 customers/hour
Average number of customers in store = 146 customers
Percentage of customers who do not make a purchase = 5%
Average number of customers in the checkout lines = 24 customers
As their consultant, you have been asked by BuyRite’s management to address the following questions:
(a) How much time on average does a customer spend in the store?
(b) How much time on average does a customer spend waiting?

Answers

Answer and Explanation:

a. The computation of the time on an average that customer spend in the store is given below:

As we know that

Average number of Customers = Average rate of Customers Entered × Average time spend  

So, Average time spend = Average number of Customers  ÷ Average rate of Customers Entered

 = 146 ÷ 305

= 0.478689 Hours

Now

= 0.478689 × 60

= 28.72 minutes

b. The computation of the time on an average the customer spend waiting is given below:

We know that

The Average number of Customers in waiting = Average rate of Customers Entered × Average time spend by customer for waiting in checkout lines

 Average time spend by customer for waiting in checkout lines = Average number of Customers in waiting ÷ Average rate of Customers entered

= 24 ÷ 305

= 0.078689 hours

Now

= 0.078689 ×  60

= 4.72 minutes

The calculation is shown below:

a. The computation of the time on an average that customer spend in the store is

 we know that

Average number of Customers = Average rate of Customers Entered × Average time spend    

So, Average time spend = Average number of Customers  ÷ Average rate of Customers Entered

 = 146 ÷ 305  

= 0.478689 Hours

So,

= 0.478689 × 60

= 28.72 minutes

b. The calculation of the time on an average the customer spend waiting is  

We know that

The Average number of Customers in waiting = Average rate of Customers Entered × Average time spend by customer for waiting in checkout lines  

Average time spend by customer for waiting in checkout lines = Average number of Customers in waiting ÷ Average rate of Customers entered

= 24 ÷ 305

= 0.078689 hours

Now

= 0.078689 ×  60

= 4.72 minutes

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Lyons Corporation produces three products from a common manufacturing process. The total joint cost of producing 2,000 pounds of Product A; 1,000 pounds of Product B; and 1,000 pounds of Product C is $7,500. Selling price per pound of the three products are $15 for Product A; $10 for Product B; and $5 for Product C. Joint cost is allocated using the sales value method.
A. Compute the unit cost of Product Aif all three products are main products.
B. Compute the unit cost of Product A if Products A and B are main products and Product C is a by-product for which the cost reduction method is used.

Answers

Answer:

ik sorry but choose b that's probably it

Stock Y has a beta of 1.8 and an expected return of 18.2 percent. Stock Z has a beta of .8 and an expected return of 9.6 percent. If the risk-free rate is 5.2 percent and the market risk premium is 6.7 percent, the reward-to-risk ratios for Stocks Y and Z are and percent, respectively. Since the SML reward-to-risk is percent, Stock Y is and Stock Z is :__________. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer:

The reward-to-risk ratios for Stocks Y and Z are 7.22 and 5.50 percent, respectively. Since the SML reward-to-risk is 6.70 percent, Stock Y is undervalued and Stock Z is overvalued.

Explanation:

Market risk premium is 6.7%

Reward-to-risk ratio of Stock = (Expected return of the Stock - Risk-free rate) / Beta of the Stock

Using equation (1), we therefore have:

Reward-to-risk ratio of Stock Y = (18.2% - 5.2%) / 1.8 = 7.22%

Reward-to-risk ratio Stock Z = (9.6% - 5.2%) / 0.8 = 5.50%

Since the β of the market is one, it implies that SML reward-to-risk is 6.70 perecent.

Therefore, we have:

The reward-to-risk ratios for Stocks Y and Z are 7.22 and 5.50 percent, respectively. Since the SML reward-to-risk is 6.70 percent, Stock Y is undervalued and Stock Z is overvalued.

what is market management​

Answers

Answer:

Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm's marketing resources and activities.

Answer:

Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm's marketing resources and activities.

Question 9 At the end of the quarter, a company did an adjusting entry to record the fact that $1,000 of Prepaid Advertising had been used up during the quarter. Which of the following items would be increased by this advertising adjusting entry? (check all that apply) 1 point Net Income Cash Cost of Goods Sold Prepaid Advertising SG&A Expense

Answers

Answer:

Sg&a expense

Explanation:

When you use up insurance, you debit advertising expense and credit prepaid advertising.

‘you don’t increase income since it’s an expense

it shouldon’t go thru cost of goods sold

you reduce not increase prepaid advertising

8. Percy Original caters to a market of individuals and households that
buys goods and services for personal consumption. Percy Original caters
market.
to a
OA) business
O B) reseller
OC) government
O D) consumer
E) marketing intermediary​

Answers

Answer:

vsw vds vDS Vsdvds Vds VSD  Vdsv dSVDS vd sV DS

Explanation:

Micropolois Technology began a new development project in 2017. The project reached technological feasibility on September 1, 2018, and was available for release to customers at the beginning of 2019. Development costs incurred prior to September 1, 2018, were $4,200,000 and costs incurred from June 30 to the product release date were $1,800,000. The 2019 revenues from the sale of the new software were $3,000,000, and the company anticipates additional revenues of $12,000,000. The economic life of the software is estimated at three years. Amortization of the software development costs for the year 2019 would be:

Answers

Answer: $600,000

Explanation:

The Development costs prior to the project reaching technological feasibility are to be expensed according to U.S. GAAP.

Costs incurred after the point of technological feasibility was reached however, will be amortized over the life of the asset.

Life of asset is 3 years and costs incurred would be $1,800,000.

Amortization amount in 2019 would be:

= 1,800,000 / 3

= $600,000

I am currently stuck on an application question on why I left my job. How would I awswer this question if I worked at an amusement park for two summers but left the first time because of ride issues and bronchitis/ and the second time I left due to drivers ed interfering with my work schedule, including not being able to get to and from work. Thank you for your time.​

Answers

Answer:

Give the reasons that you wrote

Explanation:

If I were you I would put the reasons that you wrote above but just make it sound more professional. Ex: I left my job at (name of amusement park) in (month) of (year) due to health issues.

Sam and Joan made an offer of $250,000 asking the seller to pay all closing costs. They will put 10% down and pay one discount points at closing. The amount of cash required at closing for Sam and Joan will be?

Answers

Answer:

$27,500

Explanation:

Discount points are also called mortgage points and are fees paid as prepaid interest rate on a mortgage property.

One discount point is equivalent to 1% of the loan amount.

In the given scenario a down payment of 10% was made.

Also they are pay one discount point to close.

So total down payment to be made is 10% + 1% = 11%

Amount is cash for closing = 0.11 * 250,000 = $27,500

If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is (a) $650. (b) $1,300.

Answers

The Answer is in the question click this link to find out the answer phs.dcsdk12.org good luck!

For a particular flight from Dulles to SF, an airline uses wide-body jets with a capacity of 370 passengers. It costs the airline $4,000 plus $145 per passenger to operate each flight. Through experience the airline has discovered that if a ticket price is $T, then they can expect (370−0.56T) passengers to book the flight. Determine the ticket price, T, that will maximize the airline's profit

Answers

Answer:

The ticket price, T, that will maximize the airline's profit is $402.86.

Explanation:

This can be determined as follows:

Number of passenger = (370−0.56T)

Cost = 4000 + (145 * Number of passenger) = 4000 + 145(370−0.56T) = 4000 + 53,650.00 -  81.20T = 57650 – 81.20T

Revenue = T * Number of passenger = T(370 – 0.56T) = 370T – 0.56T^2

P = Profit = Revenue – Cost = 57650 – 81.20T – (370T – 0.56T^2) = 57650 – 81.20T – 370T + 0.56T^2 =  57650 - 451.20T + 0.56T^2 ……………….. (1)

Differentiating equation (1) with rest to T, equate to 0 and solve for T, we have:

P’ =  –451.20 + 1.12T = 0

1.12T = 451.20

T = 451.20 / 1.12

T = 402.86

Therefore, the ticket price, T, that will maximize the airline's profit is $402.86.

During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholders’ equity. The articles of incorporation authorized the issue of 8 million common shares, $1 par per share, and 1 million preferred shares, $50 par per share.
Required:
Prepare the appropriate journal entries to record each transaction.
Feb. 12 Sold 2 million common shares, for $9 per share.
Feb 13 Issued 40,000 common shares to attorneys in exchange for legal services.
Feb 13 Sold 80,000 of its common shares and 4,000 preferred shares for a total of $ 945,000
Nov. 15 Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,688,000.

Answers

Answer:

Date           Account Title                                            Debit                 Credit

Feb 12        Cash                                                    $18,000,000

                  Common Stock                                                            $2,000,000

                  Paid in Capital in excess of Com-                              $16,000,000

                  mon stock par value      

Working

Cash = 2 million shares * $9 = $18,000,000

Common stock = 2 million * $1 par value = $2,000,000

Date           Account Title                                            Debit                 Credit

Feb 13       Legal expenses                                    $360,000      

                 Common Stock                                                                $40,000

                  Paid in Capital in excess of Com-                                 $320,000

                  mon stock par value

Working

Cash = 40,000 shares * 9 = $360,000

Common Stock = 40,000 * 1 = $40,000

Date           Account Title                                            Debit                 Credit

Feb 13        Cash                                                      $945,000

                  Common stock                                                               $80,000

                  Preferred Stock                                                              $200,000

                  Paid in Capital in excess of Com-                                 $640,000

                  mon stock par value

                  Paid in Capital in excess of Pre-                                   $25,000

                  ferred stock par value

                 

Working:

Common stock = 80,000 shares * 1 = $8,000

Preferred stock = 4,000 shares * $50 = $200,000

Paid in Cap, Common = 80,000 * (9 - 1) = $640,000

Date           Account Title                                            Debit                 Credit

Nov. 15     Equipment                                             $3,688,000

                 Common Stock                                                               $380,000

                 Paid in Capital in excess of Com-                               $3,308,000

                  mon stock par value

Working:

Common stock = 380,000 * $1 = $380,000

I'm struggling so bad with everything please help I'm so desperate

Answers

I should not because if I do focus on supply and demand, (of things that would be coming in the present) because it would kill a lot of time. I should focus on what I should do in the future. Not products of the future.

In an article about the financial problems of USA Today, Newsweek reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise its price from 50 cents to 75 cents, which he estimated would bring in an additional $65 million a year. The paper's publisher rejected the idea, saying that circulation could drop sharply after a price increase, citing The Wall Street Journal's experience after it increased its price to 75 cents. What implicit assumptions are the publisher and the analyst making about price elasticity

Answers

Answer: See explanation

Explanation:

The implicit assumptions that is masde by the publisher is that price elasticity is elastic. This implies that a change in price has a large impact on the quantity demanded. In this case, an increase in price will bring about a large reduction in demanded.

On the other hand, the analyst believee the price elasticity is inelastic. This means price change will have a little or no change in the quantity demanded.

The Cole Beverage Company (CBC) has a soft drink product that has a constant annual demand of 3,600 cases per year. A case of this soft drink product from Supplier A costs CBC $4 and carrying cost is charged at 25% of purchase cost (that is, $1 per case per year). Ordering costs are estimated to be $32 per order placed. Based on these information, the Economic Order Quantity (EOQ) for this soft drink product is a. 480 b. 240 c. 120 d. Not enough information given to answer this question

Answers

Answer:

a. 480

Explanation:

The computation of the economic order quantity is given below:

[tex]EOQ = \sqrt{\frac{2\times annual \ demand \times ordering\ cost }{carrying \ cost}} \\\\= \sqrt{\frac{2\times 3600\times \$32}{\$1} }[/tex]

= 480 units

The carrying cost could be determined below:

= $4 × 25%

= $1

hence, the carrying cost is $1

Therefore the economic order quantity is 480

Thus, the correct option is a.

Banks offer various types of accounts, such as savings, checking, certificate of deposits, and money market, to attract customers as well as meet their specific needs.

a. True
b. False

Answers

Answer:

it's false.. because those are not the various types of account.

The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $218,000. Sales (58,000 units) $ 986,000 Costs: Direct materials $ 160,800 Direct labor 240,800 Fixed factory overhead 104,000 Variable factory overhead 150,800 Fixed marketing costs 110,800 Variable marketing costs 50,800 818,000 Pretax income $ 168,000

Answers

Answer:

See below

Explanation:

Given the above information, we need the below formula to start with.

Break even point = Fixed costs / Contribution margin

Price = $986,000 / 58,000 = $17

Variable cost = Direct material + direct labor + variable moh + variable marketing costs

= $160,800 + $240,800 + $150,800 + $50,800

= $603,200

Unitary variable cost = $603,200 / 58,000 = $10.4

Fixed costs = Fixed moh + fixed market

= $104,000 + $110,800

= $214,800

Profit = $218,000

Break even point = ($214,800 + $218,000) / ($17 - $10.4)

= $432,800 / $6.6

= 65,576 units

Southern Corporation has a capital structure of 40% debt and 60% common equity. This capital structure is expected not to change. The firm's tax rate is 34%. The firm can issue the following securities to finance capital investments: Debt: Capital can be raised through bank loans at a pretax cost of 9.7%. Also, bonds can be issued at a pretax cost of 7.0%. Common Stock: Retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $67. Flotation costs will be $2 per share. The recent common stock dividend was $3.68. Dividends are expected to grow at 5% in the future. What is the cost of external equity

Answers

Answer:

Cost of equity = 10.9%

Explanation:

The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:

D0× (1+g)/Po × (1-F) + g

Do - dividend in the following year, K- requited rate of return , g- growth rate , F= Floatation cost in %

DATA:

D0- 3.68

g- 5%

P=67

K- ?

Po×(1-F)= 67-3.68=$63.32

Ke = 3.68× 1.05/ 63.32   + 0.05 =0.109

Cost of equity = 0.109× 100= 10.9%

Cost of equity = 10.9%

Who is responsible for protecting the environment?
a.
Government
b.
Employers
c.
Employees
d.
Everyone

Answers

Answer:

Answer D

Explanation:

Please give brainliest :D

Consider three investment plans at an annual rate of 9.38%.
Investor A: Invest $2000 per year for the first 10 years of your career. After that, make no further investments, but reinvest the amount accumulated for the next 31 years.
Investor B: Do nothing for the first 10 years. Then start investing $2000 per year for the next 31 years.
Investor C: Invest $2000 per year for the entire duration.
Note that all investments are made at the beginning of each year, the first deposit will be made today at the beginning of age 25 (n=1), and you want to calculate the balance at age of 65 (n=41).

Answers

Answer:

Investor A = $545216 .

Investor B = $352377

Investor C = $897594

Explanation:

Annual rate ( r )  = 9.38%

N = 41 years

Calculate the balance at age of 65

1) For Investor A

balance at the end of 10 years

= $2000 (FIA, 9.38 %, 10) (1 + 0.0938) ≈ $33845

Hence at the end of 65 years ( balance )

= $33845 (FIP, 9.38 %, 31) ≈ $545216 .

2) For investor B

 at the age of 65 years ( balance )

= $2000 (FIP, 9.38%, 31) = $322159 x (1 + 0.0938) ≈ $352377

3) For Investor C

at the age of 65 years ( balance )

= $2000 (FIP, 9.38%, 41) = $820620 x (1 + 0.0938) ≈ $897594

Ulko produces tomato paste at five different plants. The tomato paste is then shipped to one of three warehouses, where it is stored until it is shipped to one of the company’s four customers. The shell gives the plant capacities, the cost per ton of producing tomato paste at each plant and shipping it to each warehouse, the cost of shipping a ton of paste from each warehouse to each customer, customer demand, and the annual fixed cost of operating each plant and warehouse. Ulko’s management must decide which plants and warehouses to open, how to route paste from plants to warehouses and from warehouses to customers. All customer demand must be met. A given customer’s demand can be met from more than one warehouse, and a given plant can ship to more than one warehouse. Warehouses are trans-shipment points, anything shipped into a warehouse must be shipped out. Formulate a linear model and find the minimum cost solution for meeting customer demand.

Answers

Explanation:

all customer demand must b

The calculation of the payback period for an investment when net cash flow is uneven is:

Answers

Answer:

Determining when the cumulative total of net cash flows reaches zero.

Explanation:

Carolyn owes $9,620 on her Electronics Boutique credit card with a 16.4% interest rate. She owes $3,970 on her Miscellaneous Goods credit cards which has a 24.6% interest rate. What is the total monthly payment needed to pay off both cards in three years, assuming she makes fixed payments and does not charge any more purchases with the card

Answers

Answer:

377.50

Explanation:

Answer: 497.12

Explanation: just got it right on the test

Name a product or a company that you are familiar with. Discuss how environmental forces (social, economic, technological, competitive, and regulatory) will impact that product/company over the next five years.

Answers

Answer:

The name of the product is Coke and this is a Pestel Analysis.

PESTEL is short for Political, Economic, Social, Technological, Environmental, and Legal. All representing factors that can and will impact the operations of any business.

Explanation:

Coca-Cola is a global company with is in the business of providing refreshments to its customers by the sale of Soda or soft drinks. Because of the nature of the product, the industry in which they play is heavily regulated and they must use the best technology in order to stay relevant, competitive, and dominant in the market.  

 

Political factors

One of the regulators to whom Coca-cola must dance to its tune is the Food and Drugs Administration (FDA) a Federal Agency of the Department of Health and Human Services in the US. All Coca-cola product must meet their requirements as stipulated by law. If the laws enforced by FDA changes it could adversely affect the distribution, taxes, accounting, and all other operations of Coca-Cola.  

 

Economical factors

Some economic factors that may affect a business like Coca-cola are:

Interest rates, exchange rates, recession, Inflation, Taxes, Demand / Supply.

One critical factor in this group which the company must be on the lookout for always is changes in taste and demand. Consumers are making a shift globally towards more healthy alternatives to soda. This is because, as the world becomes more sedentary due to shifts in global economic patterns as induced by the pandemic, risk factors relating to health care on the increase. Hence consumers want to ensure that they cut down on foods and beverages that increase their predisposition to conditions such as obesity, cancer, high blood pressure, etc.

To stay relevant and competitive, the company has to seek out healthy drinks that speak to all the various localities (which are over 200 countries).

Social factors

Examples of social factors that can affect a business are:

e-commerce adaptation, purchasing habits, ease of adoption of technology, changes in customer service expectation, the education level of consumers.

The purchasing habit for Coca-cola is changing in lots of countries. People are becoming more predisposed to buying products online. How will that affect the demand for the company's products? Will it increase as online food orders increase? can the company position itself to take advantage of the trend? If yes, then it is making taking advantage of its changing social environment.

Technological factors

Adoption of best-in-class machinery is one of the strategies that has enabled Coca-Cola to achieve higher quality and quantity of its products. Speed of delivery, processes that are optimized for the lowest costs and highest outputs are now being made possible with advances in technology. Coca-cola is taking advantage of technology especially in regions such as Europe.  

Legal factors

Product liability, third-party liability, employer-employee (labor) relations, compliance, and regulatory factors are all within the scope of Coca-Cola's legal universe.  Constantly managing this space of its operations will keep it from experiencing avoidable erosion of its bottom line and brand equity.

Environmental factors

Companies no longer compete on the basis of profitability alone. Global companies are the target of onslaughts from those who campaign against the degradation of the environment. One way they do so is to discourage the consumption of the goods of a company whose activities are harming the environment.

So companies all over the world are not competing based on the triple bottom line criteria: People, Planet, Profit.

This answers the questions whether

Coca-cola is in compliance with international best practices as far as labor law is concerned;How does the company handle its effluents and wastes? is it just discharging them into the earth without treatment? or is it creatively converting them into economic products? how responsible is the company socially?then of course there is the issue of keeping the books in the black

Cheers

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