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Calculate Foxys breakeven point for each distribution strategy The two ways of distribution here are-1) trade shows and 2) online sales. Data is presented for
Calculate Foxys breakeven point for each distribution strategy
The two ways of distribution here are-1) trade shows and 2) online sales.
Data is presented for these 2 and we need to calculate the breakeven points. Is there a way to attach excel data files?
Here is the original table
Ok. Here is the question
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Case: Foxy Originals (Links to an external site.)Links to an external site.
Questions for the case
- Assess each distribution strategy from a qualitative point of view
- Identify all costs, other than variable costs, for the trade show distribution strategy.
- If the partners decide not to attend trade shows, what is the total available increased amount for the online marketing campaign for FY2014/15?
- Do the variable costs for both products (necklaces and pair of earrings) differ between trade shows and online sales?
- Calculate the variable cost per order incurred at a trade show and the variable costs incurred per online order
- 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?
- Calculate Foxys breakeven point for each distribution strategy
- Which distribution channel is projected to be more profitable in 2015?
- As Ger and Chemel, what is your decision? Why?
Additionally, here are some Support Materials for the case: Foxy Originals
BREAKEVEN AND TARGET PROFIT ANALYSIS TRADE SHOWS ORDERS BreakEven Analysis Target Profit $100,000 Number of Orders 94333 301.75 312.6197 194333 301.75 644.0199 Sales 177880.6 366447.3 EXPECTED NUMBER OF ORDERS> FROM 20 TO 45 FROM EACH SHOW (OR 200 TO 450 PER YEAR) BreakEven Analysis Target Profit $100,000 ONLINE PUSH 93000 1321.023 193000 70.4 2741.477 70.4 Sales 121534.1 252215.9 (Average Order:$92) BREAKEVEN AND TARGET PROFIT ANALYSIS TRADE SHOWS ORDERS BreakEven Analysis Target Profit $100,000 Number of Orders 94333 301.75 312.6197 194333 301.75 644.0199 Sales 177880.6 366447.3 EXPECTED NUMBER OF ORDERS> FROM 20 TO 45 FROM EACH SHOW (OR 200 TO 450 PER YEAR) BreakEven Analysis Target Profit $100,000 ONLINE PUSH 93000 1321.023 193000 70.4 2741.477 70.4 Sales 121534.1 252215.9 (Average Order:$92)Step by Step Solution
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