1. Assess each distribution from a qualitative point of view.
Trade show distribution requires a much busier and more demanding work schedule. This
was feasible for Ger and Chemel before their personal lives became bus
...
1. Assess each distribution from a qualitative point of view.
Trade show distribution requires a much busier and more demanding work schedule. This
was feasible for Ger and Chemel before their personal lives became busier with marriage and
........
2. Identify all costs, other than variable costs, for the trade show distribution strategy.
Categorize these costs as investments or fixed costs (per trade show and for fiscal
year (FY) 2015/15).
Figure 1.1
There is only one investment cost, the booth purchase for tradeshows (TS), all other costs are
fixed.
........
3. If the partners decide not to* attend trade shows, what is the total available
increased amount for the online marketing campaign for FY 2014/15?
If the partners decide to no longer attend the 10 trade shows per year, they will have
,............
4. Do the variable costs for both products (necklaces and pairs of earrings) differ
between trade shows and online sales?
Figure 2.1
The variable costs for online and TS differ due to the order volume being higher at TS. If orders
were the same for both then the products variable cost would be the same because their
........
5. Calculate the variable costs per order incurred at trade show and the variable costs
incurred per online order.
6. For each distribution strategy, calculate the unit contribution and contribution
margin rate for each of the two product lines (necklaces and pairs of earrings).
What is the weighted average contribution margin rate for an order at a trade show
and for an online order?
7. Calculate Foxy’s breakeven point for each distribution strategy.
8. Which distribution channel is projected to be more profitable?
9. As Ger and Chemel, perform whatever analysis and make whatever
recommendations you deem necessary.
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