Question
Foxy Originals has identified two approaches for entering the US market - trade shows or sales representatives. Your team has been retained as consultants. You
Foxy Originals has identified two approaches for entering the US market - trade shows or sales
representatives. Your team has been retained as consultants. You are to make a recommendation to the client. Be sure to attach your Excel analysis as a separate file.
Case link: https://pdfcoffee.com/foxy-originals-pdf-free.html
1. Compute the contribution margin per order (based on the expected product mix) for
entering the US market - trade shows or sales representatives.
2. Compute the number of orders Foxy needs to generate to breakeven for the year, assuming Jen and Suzie attend 10 trade shows per year.
3. Compute the number of units Foxy must sell through sales representatives to breakeven for the year.
4. Foxy hopes that expanding into the US market will increase pretax profits by $100,000 per year. How many orders must Foxy generate through trade shows and sales representatives to achieve this target profit?
5. Which approach would you recommend that Jen and Suzie take for entering the US market? Why?
Thank you
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