2. Review Exhibit 5B "Common Costs for Concentrate Manufacturers and Bottlers” in the case, how may you explain the diff

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2 Review Exhibit 5b Common Costs For Concentrate Manufacturers And Bottlers In The Case How May You Explain The Diff 1 (94.68 KiB) Viewed 38 times

2. Review Exhibit 5B "Common Costs for Concentrate Manufacturers and Bottlers” in the case, how may you explain the differences between the two industries' gross profit margin (% of Net Sales) using the five forces model? EXHIBIT 5B Common Costs for Concentrate Manufacturers and Bottlers (2009) Source: D. Yoffie and R. Kim, “Cola Wars Continue: Coke and Pepsi in 2010," Harvard Business School Case 9-711-462 (May 26, 2011). Concentrate Manufacturer Bottler Dollars Per Case % of Net Sales Dollars Per Case % of Net Sales Net Sales $0.98 100% $4.63 100% Cost of Goods Sold $0.22 22% $2.67 58% Gross Profit $0.76 78% $1.97 42% Direct Marketing Expense $0.21 21% $0.45 10% Selling & Delivery Expense $0.00 0% $0.85 18% General & Admin Expense $0.24 25% $0.31 6% Operating Income $0.30 32% $0.36 8%