1.
Calculate the following measures for each of Company C’s operating segments (excluding Bottling Investments and Corporate):
Percentage of total net revenues, 2013 and 2014.
Percentage change in total net revenues, 2012 to 2013 and 2013 to 2014.
Operating income as a percentage of total net revenues (profit margin), 2013 and 2014
1.
Explanation of Solution
Percentage of total net revenues, 2013 and 2014
2014 | 2013 | |||
Total net revenues | Percentage | Total net revenues | Percentage | |
Eurasia & Africa | $ 2,730 | 7.03% | $ 2,763 | 7.08% |
Europe | $ 5,536 | 14.25% | $ 5,334 | 13.66% |
Latin America | $ 4,657 | 11.99% | $ 4,939 | 12.65% |
North America | $ 21,479 | 55.32% | $ 21,590 | 55.32% |
Asia Pacific | $ 5,746 | 14.80% | $ 5,869 | 15.03% |
Eliminations | $ (1,325) | (3.41%) | $ (1,471) | (3.76%) |
Total | $ 38,823 | 100% | $ 39,024 | 100% |
Table: (1)
Percentage change in total net revenues, 2012 to 2013 and 2013 to 2014
2014 | 2013 | 2012 | |||||
Total net revenues | Total net revenues | Total net revenues | Change 2013 to 2014 | Change 2012 to 2013 | Percentage 2013 to 2012 | Percentage 2012 to 2013 | |
Eurasia & Africa | $ 2,730 | $ 2,763 | $ 2,697 | $ (33) | $ 66 | -1.19% | 2.45% |
Europe | $ 5,536 | $ 5,334 | $ 5,123 | $ 202 | $ 211 | 3.79% | 4.12% |
Latin America | $ 4,657 | $ 4,939 | $ 4,831 | $ (282) | $ 108 | -5.71% | 2.24% |
North America | $ 21,479 | $ 21,590 | $ 21,680 | $ (111) | $ (90) | -0.51% | -0.42% |
Asia Pacific | $ 5,746 | $ 5,869 | $ 6,308 | $ (123) | $ (439) | -2.10% | -6.96% |
Eliminations | $ (1,325) | $ (1,471) | $ (1,644) | $ 146 | $ 173 | -9.93% | -10.52% |
Total | $ 38,823 | $ 39,024 | $ 38,995 | $ (201) | $ 29 | -0.52% | 0.07% |
Table: (2)
Operating income as a percentage of total net revenues (profit margin), 2013 and 2014.
2014 | 2013 | |||||
Total net revenues | Operating income | Percentage | Total net revenues | Operating income | Percentage | |
Eurasia & Africa | $ 2,730 | $ 1,084 | 39.71% | $ 2,763 | $ 1,087 | 39.34% |
Europe | $ 5,536 | $ 2,852 | 51.52% | $ 5,334 | $ 2,859 | 53.60% |
Latin America | $ 4,657 | $ 2,316 | 49.73% | $ 4,939 | $ 2,908 | 58.88% |
North America | $ 21,479 | $ 2,447 | 11.39% | $ 21,590 | $ 2,432 | 11.26% |
Asia Pacific | $ 5,746 | $ 2,448 | 42.60% | $ 5,869 | $ 2,478 | 42.22% |
Eliminations | $ (1,325) | — | 0.00% | $ (1,471) | — | 0.00% |
Total | $ 38,823 | $ 11,147 | 28.71% | $ 39,024 | $ 11,764 | 30.15% |
Table: (3)
2.
Determine whether company C should attempt to expand its operations in a particular region of the world to increase operating revenues and operating income.
2.
Explanation of Solution
The company C should attempt to expand its operations in Europe as the net revenues and operating income are high and are increasing year by year in Europe.
3.
List any additional information required to conduct the analysis.
3.
Explanation of Solution
Additional information that is required to conduct the analysis of the study is:
1.
2. Data for the previous year of the company.
3. Data for the competitors company.
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Chapter 8 Solutions
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