Question

Coca cola sales in germany were 243000 cases in 2934, 1million cases in 1936, and 4.5million cases in 1939. Calculate the company's sales growth rate for time in the following :Year Growth Rate1934-1936 ?1936-1939 ?1934-1939 ?If Coca- Cola Co. cut off all syrup sales to Germanay in 1940, resulting in no sales from 1943 to 1945. If Coca-Cola's sales had grown from 1939 to 1945 at the same rate that they grew between 1834 and 1939, What was its aproximate sales in 1945 ? Hint: Use sales data from 1939 as the present value.Coca-cola's worldwide sales as of December 31,2011 was 26.7 billion cases. Assume the following sales distribution is as follows: Unit case volume Eastern Europe 20% Germany 16% Spain 14% Great Britain 12% France 8% Italy 9% Other 21%If Coke worldwide growth were to continue at the same growth rate as it did in Germany between 1939 and 2008, when sales grew at the rate of 10.26%, its hypothetical sales in easstern urope in 2053( 42 years from 2011 would be approximated to what in billions?

Answer 1

Answer:

Check the following calculations

Explanation:

1934 Sales = 243000 ; 1936 = 1000000

1936 sales = 1934 sales* ( 1 + Growth Rate) ^ N

1000000 = 243000 * ( 1 + R) ^ 2

(1+ R) ^2 = 4.115

(1+ R) = 2.03

R = 2.03 - 1 = 1.03 = 103%

Similarly for 1936 - 1939 period

1939 period sales = 1936 period sales * ( 1 + growth rate) ^ N

4.5 = 1.00 * ( 1 + R) ^3

( 1 + R)^3 = 4.5

(1+R) = 1.651

R = 65.1%

From 1934 - 1939 period

4500000 = 243000 * ( 1 + R) ^ 5

( 1 + R) ^ 5 = 18.519

( 1 + R) = 1.7927

R = 79.28%

Sales in 1939 = 4.5 Million ; CAGR = 79.28% , we need to calculate sales in 1945 which is 6 years from 1939

Sales 1945 = 4.5 Million * ( 1 + CAGR) ^ 6

Sales 1945 = 4.5 * ( 1 + 0.7928) ^ 6 = 149.42 Million Cases

Sales as on 2011 = 26.7 Billion

Contribution from Eastern Europe = 20% * 26.7 = 5.34 Billion

Sales in 2053 = Sales in 2011 * ( 1 + Growth rate) ^ 42

Sales 2053 = 5.34 * ( 1 + 0.1026) ^ 42 = 322.92 Billion Cases