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Business Description After taking business classes, Cyrus, an avid sportsman, decided to start selling unique sporting supplies for children at trade shows. He has two
Business Description After taking business classes, Cyrus, an avid sportsman, decided to start selling unique sporting supplies for children at trade shows. He has two products: Product 1: "Ultimate Frisbee"- an aerodynamic frisbee that will sell for $15.00. Product 2: "Booming Boomerang"- a handcrafted wooden boomerang set. The boomerang will sell for $30.00. a Costs: Cyrus has hired an employee to work the trade show booths. The work contract is $1,000 per month plus a commission equal to 15% of selling price. Cyrus will also spend $545 per month on trade-show entry fees. Cyrus is purchasing the products from a supplier in Mexico. Ultimate frisbee costs $3.00 each; Booming boomerang cost $8 each. Shipping and handling on the Frisbee will cost $1.20 each; Shipping and handling on the Boomerangs which are heavier, will cost $4.00 each. The shipping and handling costs will be paid by Cyrus, not the customer. Assume Cyrus expects to sell 200 Frisbees and 100 Boomerangs during his first month of operations (November). The sales mix is 2" Frisbees" for every 1 "Boomerang" or a 2:1 ratio. Cyrus' long-term financial goal is to earn an operating income of $4,200 per month. 2) Complete the Product Analysis (yellow boxes) assuming Cyrus only sells either Product #1 (Frisbees) OR Product #2 (Boomerangs). Check figures: B/E Product #1 = 181 units; B/E Product #2= 114 units Frisbee Product #1 Unit CM CM ratio (%) Breakeven point: -in units -in sales revenue Target profit volume: -in units - in sales revenue Boomerang Product #2 Unit CM CM ratio (%) Breakeven point: -in units - in sales revenue Target profit volume: -in units - in sales revenue
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