Question

Company	1	2
Total Revenue	100.0%	100.0%
Cost Of Goods Sold	39.2	58.2
Gross Profit	60.8	41.8
Selling General & Admin Exp.	32.2	14.6
Depreciation & Amort.		7.2
Other Operating Expense/(Income)	0.0	16.2
Other Operating Exp., Total	32.3	38.0
Operating Income	28.5%	3.8%

Based on the following table, which company is Refresco Group B V? which one is Coca Cola? Give two reasons for your answer

Answer 1

In the given Data financial particulars of two companies are given Named Refresco Group BV and Coca Cola.

Coca cola is market leader in the industry. It have high Gross margins and high opertaing margins. On the other hand Refresco Group BV have very less gross margins as well as Opertaing margins.

In the given question the first company have a gross margin of 60.8% of revenue on the other hand second company have gross margin of just 41.1% of revnue. It indicates that first company is coca cola and second one is Refresco group BV.

If we see operating income First company have operating income of 28.5% of revenue whereas second company have operating income of just 3.8%.

Hence on the basis of above we can conclude that first company is coca cola and second one is Refresco Group BV.