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

The sales growth rates for Coca-Cola in Germany between 1934-1936, 1936-1939, and 1934-1939 are 311.52%, 350.00%, and 1751.85%, respectively. The hypothetical sales in 1945 and the projected sales in 2053 for Eastern Europe can be calculated using compound growth formulas, using the present values and applying the respective annual growth rates over the given number of years.

Step-by-step explanation:

To calculate the sales growth rate for Coca-Cola in Germany for the specified years, we can use the following formula: Growth Rate = ((Ending Value / Beginning Value) - 1) * 100%. Let's apply this formula to the given time periods.

1934-1936 Growth Rate:

Growth Rate = ((1,000,000 cases / 243,000 cases) - 1) * 100% = ((4.115226337 - 1) * 100%) = 311.52%

1936-1939 Growth Rate:

Growth Rate = ((4,500,000 cases / 1,000,000 cases) - 1) * 100% = ((4.5 - 1) * 100%) = 350.00%

1934-1939 Growth Rate:

To calculate this, we will use the sales volume in 1934 and 1939 directly: Growth Rate = ((4,500,000 cases / 243,000 cases) - 1) * 100% = ((18.51851852 - 1) * 100%) = 1751.85%

For Coca Cola's hypothetical sales in 1945, had growth continued at the same rate as 1934-1939, we need to calculate the annual growth rate from the overall growth rate and then apply it to the sales in 1939 till 1945.

Assuming compound growth, the annual growth rate (r) can be calculated from the overall growth rate (G) over the number of years (t) using the formula G = (1 + r)t. In this case, G = 1751.85% or 18.5185 in decimal form, t = 5 years from 1934 to 1939. We need to solve for r, which will give us the annual growth rate.

Once we have r, we can compute the hypothetical sales in 1945 using the formula Future Value = Present Value * (1 + r)t, where the Present Value is the sales in 1939 (4,500,000 cases), and t is the number of years from 1939 to 1945, which is 6 years.

To approximate Coca-Cola's hypothetical sales in 2053 in Eastern Europe if worldwide growth continued at the German growth rate of 10.26%, we can use the formula:

Future Sales = Current Sales * (1 + growth rate)number of years

First, calculate the current sales in Eastern Europe, which is 20% of 26.7 billion cases, and then apply the growth rate over 42 years.

Answer 2

Check the following calculations

Step-by-step 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