Title GA_Group 1.docx ✅

2 D. Applications of Break-Even Analysis in Management 13 E. Factors affecting Break-Even point 14 5. Activity-based costing 14 a. Explanation of ABC methodology 14 b. Application of ABC to PepsiCo’s operations 15 c. Conclusion through example 17 IV. Conclusion: 18 V. Appendix 18 VI. References 19 I. Executive summary

4 1. Product lines a. Description of major product lines ● Beverage: To satisfy different customer preferences, PepsiCo offers a broad range of beverages. Among their well-known carbonated beverages are Mountain Dew, 7UP, Pepsi, and Diet Pepsi. Gatorade, Revive, and Tropicana juices are among the non-carbonated possibilities. Their brands of bottled water include Aquafina and Lifewtr (available in the US, Canada, and UAE). PepsiCo also offers functional beverages like Propel and SoBe for those who are health-conscious (PepsiCo, 2020). ● Snack: Some of the snack food categories that PepsiCo manufactures are chips and dips which has Lay’s potato chips, Doritos tortilla chips, and Cheetos cheese-flavored snacks among others. They also have Tostitos tortilla chips for dips and Ruffles for that firm textured type with consumers all over the world (Pepsico annual report, 2022). ● Cereal and grain: PepsiCo's cereal and grains product line is represented by the Quaker brand, which features a range of cereals, granola bars, and oatmeal products. This comprises portable granola bars and steel- cut oats, flavored instant oatmeal. Well-known cereals like Life and Cap'n Crunch appeal to both kids and adults, demonstrating PepsiCo's dedication to providing wholesome and useful food choices (Quaker, 2021). b. Analysis of each product line’s revenue contribution ● Beverage In 2023, only the PepsiCo Beverages North America segment accounted for approximately 30% of PepsiCo’s net revenue. Regarding the global market, beverages contribute to nearly 40% of PepsiCo’s total net revenue. Therefore, beverages are a vital component of PepsiCo's revenue, driven by strong brand portfolios, innovation, and strategic market expansions (Pepsico annual report, 2022). ● Snack