Company History Monster Beverage Corporation develops, markets, sells, and distributes alternative beverages in the United States

and internationally. The company was formally referred to as Hansel Natural Corporation and changed its name to Monster Beverage Corporation in January 2012. Monster Beverage Corporation was founded in 1985 and is base in Corona, California. Today, 27 varieties of Monster are offered in core lines being Monster energy, Java Monster, Extra Strength, Import, and Rehab. Monster has competitors in both the soft drink and energy drink market. These competitors include, Red Bull, Rockstar, Full Throttle, Amp, Coca Cola, and Pepsi Co. Unlike other beverage companies, Monster does not produce, bottle or distribute any of its products. Instead the company relies on third party users such as Coca Cola Company, Anheuser-Bush Companies and other small companies. Due to this Monster have fewer than 1,300 employees. The current CEO of Monster is Rodney F. Sacks. Other key executives include Hilton H. Schlosberg, Mark J. Hall, Thomas J. Kelly, and Benjamin M. Polk. Overall Company Revenue, Expenses & Contribution Margin
Overall company revenue in 2011 = $1,703.2 million Operating expenses in 2011 = $437.9 million Other income (expense) in 2011 = $0.8 million Contribution margin for 2011 = $543.2 million

Relevant Cost of the Monster Energy Drink Direct Labor $17 per hour, 1/60 x $17 = $.28 per can Direct Materials Carbonated water, sucrose, glucose, taurine, sodium citrate, panax ginseng root extract, L-carnitine, caffeine,sorbic acid, benzoic acid, niacinamide, sodium chloride, glucuronolactone, inositol, guarana seed, pyridoxine, hydrochloride, sucralose, riboflavin, maltodextrin, cyanocobalamin Variable Overhead x Direct Labor (.28) = $.14 per can

$.50 per can

Relevant Cost = DL + DM + VOH = 0.28 + 0.50 + 0.14 = $0.92 Is the product profitable & why Yes because each Monster Energy drink sells at $1.99 per can in most stores and it costs Monster Energy $0.92 to produce one can. Therefore, Monster Energy drink has a contribution margin of $1.07 per can.

http://investors.monsterbevcorp.com/annuals.cfm http://www.livestrong.com/article/297117-ingredients-in-monster-energydrinks/?utm_source=undefined_R1 http://monsterbevcorp.com/