1. 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

1. Do the variable costs for both products (necklaces and pair of earrings) differ between trade shows and online sales?
2. Calculate the variable cost per order incurred at a trade show and the variable costs incurred per online order
3. 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?
4. Calculate Foxys breakeven point for each distribution strategy
5. Which distribution channel is projected to be more profitable in 2015?

ONLINE CHANNEL ANALYSIS CONS> HARD TO PERCEIVE QUALITY THROUGH ONLINE SALES ( Suggestion Custoemr review section should be emphasized on the webpage design). Al Facebook, Instagram, Pinterest CHANNEL DECISION TARGET TO INCREASE PROFITS BY AT LEAST $100,000 If they go in this direction, the recurring cash costs associated with Trade Shows will be put into this channel $93,000 No additional effects on any other parts of the operations of the firm Budget> $93,000 Cost per click model Competitive Bid price per Click Between 3 and 5% of website visitors will make a purchase Average Order> They are charged by the click. Once clicks reach limit of the day, they no longer are shown $1.05 One earrings and two necklaces Prices will be the same Retailing Price per Sales per Contribution Order Per Unit Contribution Contribution Cost per Order Costs Per Order per Order Percentage Unit $24 $34 1 earrings 2 Necklaces $5.50 $8.05 $5.50 $16.10 $24 68 $18.50 $25.95 $18.50 $51.90 76.3% $21.60 $92 $70.40 93000 PRICE PER CLICK 1.05 88571.43 EXPECTED NUMBER OF VISITS TRADE SHOWS ANALYSIS RESTRICTION> Owners don't want to work so hard any longer Investment $4,000 for 30 shows Depreciation (4000/30 133.33) Total 10 shows Shipping Booth Travel Expenses Promotional Mats. Depreciation $3,000 per registation per show $1,500 per show $2,000 per show. $1000 for each partner $2,800 per show 30000 15000 20000 28000 1333.3 94333.3 $133 Per show De estos $93000 con cash step costs Total Varible Contribution Contribution Margin Variable Manuf AVERAGE ORDER Sale Price Contribution per Order 25 necklaces 12 pair or earrings $8.05 $5.50 $17 $425 144 $569 $8.95 6.50 201.25 $223.75 66 $78.00 53% 54% $12 267.25 Order Contrib $301.75 EXPECTED NUMBER OF ORDERS> FROM 20 TO 45 FROM EACH SHOW (OR 200 TO 450 PER YEAR)