Essays on Catanzaro

Cost structure

Monster Beverage Corporation is a manufacturer and distributor of energy drinks. The cost structure of the company consists of both fixed and variable costs. The unit price for a can of Monster Energy drink sells at an average price of $7.90.

Variable costs

Monster’s variable costs include the cost of concentrates and beverage bases, the cost of raw materials, re-packing costs and co-packing costs. The company’s raw materials include cans, flavours, containers, bottles, packing materials and ingredients. The table below indicates each of the variable cost items and the respective costs per can of Monster’s Energy Drink.

Contribution margin

Contribution ...

SIX-MONTHS PROJECTION OF REVENUE AND EXPENSES

REVENUE FEES 248,000 PREMIUMS 95,000 OTHERS 110,000 453,000 EXPENSES COMPENSATION AND BENEFITS 120,000 DIBEATES COST AND DRUGS 190,000 FOOD SUPPLY 70,000 OTHER EXPENSES 70,000 TOTAL VARIABLE COST 450,000 CONTRIBUTION MARGIN 3,000 FIXED EXPENSES 380,000 In business, budget involves a plan that the hospital will employ to determine the difference between the outgoing expenses and the incoming revenues. The budget will help ensure proper use of the available resources as previously planned without exceeding the budget. It also helps in the justification of the appropriate use of the funds, ...