Economics
What is the cost of sweet tea? How does it compare to the cost of the popular sugared soft drink Coca-Cola?

Serving
Since Coke is normally consumed in twelve ounce cans, a can of Coke is considered a serving and is the basis of comparsion. Depending on the level of ice, one glass of sweet tea is about equal in volume to a can of Coke. 

1 serving = 12 ounces = 1 can of coke = 1 glass of sweet tea with ice

Coca-Cola
Coke can be purchased at Walmart for $5.98 for 24 twelve ounce cans or $4.98 when on sale. 

5.98 $  |  case      0.25 $  |  100 cent   25 cent
------------------ = ------------------- = --------
case    |  24 coke   coke    |  $          coke

cost per serving (can) of coke: 25 cents

Sweet tea
cost of a tea bag: 

6.98 $  |  box          0.15 $ 
--------------------- = -------
box     |  48 tea bag   tea bag
cost of a pound of sugar: 
2.00 $       0.40 $ 
---------- = --------
5 lb sugar   lb sugar
cost of a cup of sugar: 
0.40 $    |  lb sugar         0.18 $
--------------------------- = ---------
lb sugar  |  2.25 cup sugar   cup sugar
cost to produce one STPU: 
$0.15 one tea bag
$0.27 for 1.5 cups for sugar
$0.00 water and ice assumed to be free
--------------------------------------
$0.42 per STPU
number of servings in an STPU: 
224 ounce  |  serving    18 serving
---------------------- = ----------
STPU       |  12 ounce   STPU
cost of sweet tea per serving: 
0.42 $  |  STPU         0.023 $  |  100 cent    2.3 cents
--------------------- = --------------------- = ---------
STPU    |  18 serving   serving  |  $           serving

So the cost of a glass of sweet tea, not including lemon, is a little over 2 cents.

cost of a lemon: 

2.60 $     |  bag lemon   0.26 $
----------------------- = ------
bag lemon  |  10 lemon    lemon
cost of a lemon slice: 
0.26 $  |  lemon           0.03 $       |  100 cent    3 cents
------------------------ = ------------------------- = -----------
lemon   |  8 lemon slice   lemon slice  |  $           lemon slice
So adding lemon raises the cost to between 5 and 6 cents per glass. Since lemons more than double the cost of sweet tea, is it really worth including lemons? Yes!

Coke versus Sweet tea
lemoned sweet tea: 

1 coke       |  0.25 $  |  sweet tea   
------------------------------------ = 4.55
1 sweet tea  |  coke    |  0.055 $
So one Coke costs the same as 4+ glasses of lemoned sweet tea.
unlemoned sweet tea: 
1 coke       |  0.25 $  |  sweet tea   
------------------------------------ = 10.9
1 sweet tea  |  coke    |  0.023 $
So one Coke costs the same as 10+ glasses of unlemoned sweet tea.

This comparison uses a reasonably low Coke cost. But Coke is often purchased at two to four times this cost. If Coke is 60 cents/can then the numbers work out to:

60 cent Coke = 26 unlemoned glasses = 11 lemoned glasses

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Last update 01/04/2004