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Johnson & Johnson And The Product Essay

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The company that I selected is Johnson & Johnson and the product I will be writing about is Listerine. Listerine was originally marketed by Lambert Pharmacal Company later known as Warner-Lambert. In December 2006, Johnson & Johnson acquisition of Pfizer’s consumer healthcare division is what led to the manufacturing and distribution of Listerine for this company. The inputs put into making Listerine is Raw Materials, design, and the manufacturing process, with these inputs we will analyze them to see how the effect the production and cost of making and selling Listerine.
All the costs by a company can be broken into two categories, fixed costs and variable costs. Costs that are independent of output are called fixed costs. Fixed costs remain constant throughout the relevant range and are usually considered sunk for the relevant range. Buildings and machinery are included inputs that cannot be adjusted in the short term. They are only fixed in relation to the quantity of production for a certain time period. The cost of all inputs is variable, in the long run.
Variable costs are costs that vary with output. Variable cost changes according to the quantity of a good or service being produced. Generally variable costs increase at a constant rate relative to labor and capital. Variable costs may include wages, utilities, materials used in production, etc. The inputs of Listerine start with Raw Materials (generally composed of diluents, antibacterial agents, soaps, flavorings,

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