Question
I solved 6 & 7. Please I need a help of 8,9 and 10. 6. If the Exchange Tower store were to close, how much
I solved 6 & 7. Please I need a help of 8,9 and 10.
6. If the Exchange Tower store were to close, how much funding could then be allocated toward influencer marketing for the 2020/21 fiscal year? - Calculate the savings from closing the Exchange Tower store and allocate a portion to influencer marketing. Total Fixed Costs of the Exchange Tower Store: $210,816 Piltz plans to use 15% of the store's annual recurring cash costs for influencer marketing. Funding for Influencer Marketing = 0.15 * $210,816 = $31,622.40
7. Calculate and analyze Thursday's break-even for the influencer marketing strategy: - Break-even Point (in units) = Total Fixed Costs / Unit Contribution Margin - Analyze the feasibility of achieving the break-even point with the influencer marketing strategy. Thursdays would need approximately 8 influencer-sponsored posts to break even with the influencer marketing strategy, assuming a 2% visitor conversion rate.
8. Calculate and analyze the projected profitability of the Exchange Tower store for the 2020/2021 fiscal period: - Projected Profit = (Total Revenue - Total Variable Costs) - Total Fixed Costs
9. Calculate and analyze the projected profitability of the online store if the Exchange Tower store were to close for the 2020/2021 period: - Projected Profit = (Total Revenue - Total Variable Costs) - Total Fixed Costs
10. As Piltz, what is your decision? Justify your choice using both qualitative and quantitative analyses: Based on the calculations and qualitative factors, decide whether to maintain the Exchange Tower location or focus on the online store. Justify your decision using the data and analyses.
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