Question
Below are dollar sales figures, historical and forecast, for the North American retail hobby games market. $ sales in millions 2013 2015 2019 (est)
Below are dollar sales figures, historical and forecast, for the North American retail hobby games market.
| $ sales in millions | 2013 | 2015 | 2019 (est) |
| Hobby Board Game Segment | $75 | $240 | $365 |
| Non-board Game Segment | $625 | 930 | $1310 |
| Total Hobby Game Market | $700 | 1180 | $1675 |
Question 1a. What share of the Total Hobby Game Market does the Hobby Board Game Market represent in each of the three years. Fill in the blanks in this table:
| Market share | 2013 | 2015 | 2019 (est) |
| Hobby Board Game Segment |
Question 1b. What was the compound annual growth rate for the two segments and the total market between 2013 and 2015? What is the projected compound annual growth rate for the two segments and the total market between 2015 and 2019? Fill in the
blanks in this table:
| Compound annual growth rate | 2013-2015 Annual Growth | 2015-2019 Annual Growth |
| Hobby Board Game Segment | ||
| Non-board game segment | ||
| Total hobby game market |
Show an example of your work:
2. Apply the MSRP of Catacombs to the four diagrams in Exhibit 3. How much money does each member of the channel (including Elzra) make in selling a unit of the Catacombs game? Perform the same calculation for direct selling through the website.
Note that NA in the table below indicates that this channel member does not receive any money in the distribution system indicated. Fill in the other blanks. All the entries in a given row should add up to the Customer Price for that row.
| Publisher (Elzra) | Mega- distributor | impressions | distributor | retailer | customer | |
| Ex. 3A | NA | 64.99 | ||||
| 3b | NA | 64.99 | ||||
| 3c | NA | NA | NA | 64.99 | ||
| 3d | NA | 64.99 | ||||
| Website | NA | NA | NA | NA | 59.99 |
show example of work
3. Assume that it will cost $55,000 in salary to hire an extra employee at Elzra. Assume Elzra's variable costs for a unit of Catacombs are $4.33 for manufacturing and $5.20 for shipping. Using the dollar figures you calculated in question 2, calculate the following unit breakeven for hiring one employee in each of the following situations.
Question 3a. How many units of Catacombs does Elzra have to sell to pay for one employee if it eliminates Impressions (Exhibit 3a in Q2)?
Question 3b. How many units of Catacombs does Elzra have to sell to pay for one employee if it keeps Impressions (Exhibit 3b in Q2)?
Question 3c. Question 3b. How many units of Catacombs does Elzra have to sell to pay for one employee if it sells directly (Website in Q2)?
Step by Step Solution
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Step: 1
Question 1a Market Share To calculate the market share for the Hobby Board Game Segment in each of the three years 2013 Market Share 75 million 700 mi...
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
