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The profitability of the leading cola syrup manufacturers Peps Co and Coca-Cola and of the bottlers in the cola business is very different. PepsiCo and Coca-Cola enjoy an 81 percent operating profit as a percentage of sales; bottlers experience only a 15 percent operating profit as a percentage of sales. Which of the following statements explains why the cola syrup manufactuning business is potentilly so profitable relative to the bottling business? Check all that apply, O High capital costs mean that the bottling industry has considerable barriers to entry. O PepsiCo and Coca-Cola together make up the great majority of the market. O Bottlers have unique suppliers (Pepsi and Coke) while the manufacturers buy their inputs from numerous vendors
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