2) compute contribution margin for each channel
3) compute break even point (in terms of number of orders and dollars) for each distribution channel
(HINT - Fixed costs are all trade show expenses. Use depreciation for the booth as a fixed cost. The booth cost should be considered an investment not a fixed cost)
4) Calculate the number of orders at a target profit of $100,000
5) Calculate the profitability for both the low and high order estimates
2).in this case
net income will be= 148,000*45-20*148,000-100,000-3,200,000
=400,000+1,000,000
1,400,000
thus
this is morethan the previous one
thus this is a better off
3).income underestimated will be
540,000-216000
=324,000
4).total income should be
1.254/0.34 million
=3,688,235
thus let x unit be sold then
x*50-20*x-3,200000=3,688,235
thus x= 229,608 unit
5.
contribution margin per unit= 4,440,000/148,000
=$ 30
break even point= point where net income is zero
thus x*50-20*x-3,200000=0
thus x= 106,666,667 units
2) compute contribution margin for each channel 3) compute break even point (in terms of number...
For each distribution strategy calculate the unit contribution and contribution margin rate for each of the two product lines. What is the weighted average contribution margin rate for an order at a trade show and for an online order? Data from Foxy Originals --- if you need a data file please connect Please find attached the data for online and trade show sales/distribution Do the variable costs for both products (necklaces and pair of earrings) differ between trade shows and...
Case Study: Supply Chain Trends The Do-Green Solar Systems case addresses challenges faced by a Canadian manufacturer as a result of the CUSMA trade agreement. As you read through the case, think abou the challenges, risks and complexities in changing their supply chain from North Americanto Internationalmarkets. Do-Green Solar Systems Taylor Douglas, V.P of Do-Green Solar Systems, was evaluating the strategic position of the company. With the new Canada-United States-Mexico (CUSMA) agreement in place and the uncertainty around future trade...
The Do-Green Solar Systems case addresses challenges faced by a Canadian manufacturer as a result of the CUSMA trade agreement. As you read through the case, think abou the challenges, risks and complexities in changing their supply chain from North Americanto Internationalmarkets. Do-Green Solar Systems Taylor Douglas, V.P of Do-Green Solar Systems, was evaluating the strategic position of the company. With the new Canada-United States-Mexico (CUSMA) agreement in place and the uncertainty around future trade with the United States Taylor...
Case Study: Supply Chain Trends The Do-Green Solar Systems case addresses challenges faced by a Canadian manufacturer as a result of the CUSMA trade agreement. As you read through the case, think abou the challenges, risks and complexities in changing their supply chain from North Americanto Internationalmarkets. Do-Green Solar Systems Taylor Douglas, V.P of Do-Green Solar Systems, was evaluating the strategic position of the company. With the new Canada-United States-Mexico (CUSMA) agreement in place and the uncertainty around future trade...
Case Study: Supply Chain Trends The Do- Green Solar Systems case addresses challenges faced by a Canadian manufacturer as a result of the CUSMA trade agreement. As you read through the case, think abou the challenges, risks and complexities in changing their supply chain from North Americanto Internationalmarkets. Do-Green Solar Systems Taylor Douglas, V.P of Do- Green Solar Systems, was evaluating the strategic position of the company. With the new Canada-United States Mexico (CUSMA) agreement in place and the uncertainty...
please answer 3 question now Saved Help Save & Exit Case Study: Supply Chain Trends Case Study: Supply Chain Trends The Do-Green Solar Systems case addresses challenges faced by a Canadian manufacturer as a result of the CUSMA trade agreement. As you read through the case, think abou the challenges, risks and complexities in changing their supply chain from North Americanto Internationalmarkets. Do-Green Solar Systems Taylor Douglas, VP of Do-Green Solar Systems, was evaluating the strategic position of the company....
Problem 2-22 (Algo) CVP Applications; Contribution Margin Ratio; Break-Even Analysis; Cost Structure [LO2-1, LO2-3, LO2-4, LO2-5, LO2-6] Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below: Sales (12,700 units × $20 per unit) $ 254,000 Variable expenses 127,000 Contribution margin 127,000 Fixed expenses 142,000 Net operating loss $ (15,000 ) Required: 1....
Problem 2-22 (Algo) CVP Applications; Contribution Margin Ratio; Break-Even Analysis; Cost Structure [LO2-1, LO2-3, LO2-4, LO2-5, LO2-6] Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below: Sales (12,700 units × $20 per unit) $ 254,000 Variable expenses 127,000 Contribution margin 127,000 Fixed expenses 142,000 Net operating loss $ (15,000 ) 5. Refer...
Questions: 1. What trends are happening as it relates to consumer retail purchases, online vs. in-store? 2. What challenges do traditional retailers face in trying to transition from in-store sales to online sales? 3. List and briefly describe at least three of the strategies that Target has implemented in its staffing system to better accommodate online sales. 4. What are the career implications of the trends described in this article? 5. From a consumer perspective, what are the relative advantages...
Case Study Blendtec Goes Global ... Again Harvey Scott, vice president of international development, was in charge of Blendtec's global expansion effort. He and his team had been gathering data and meeting with international partners and contacts for months to help determine which global markets to enter, when to enter them, and how. Scott had to decide how to leverage Blendtec's existing network of International partners and distribution channels, or whether to scrap them and start over. He understood that...