Question
. Ophelia begins her analysis by identifying which channel generated the most profit from sales of the Russell. Which distribution channel generated the most profit
. Ophelia begins her analysis by identifying which channel generated the most profit from sales of the Russell. Which distribution channel generated the most profit this year?
(Click to select) Discounters Electronics specialty stores Warehouse clubs All channels generate profit equally Department stores
2. As she digs deeper into the data, Ophelia realizes that while discounters do have a high profit level, discounters are quite low in terms of return on sales. How can this be explained?
(Click to select) The price that discounters pay for the Russell is lower than any other channel. Discounters have proportionally higher variable costs. Discounters only pay $52 for the Russell with a 41 percent return on sales. Discounters have larger fixed costs than the other channels. Return on sales is calculated based on sales volume, not profit.
3. Ophelia has begun to convince her boss that cooperative marketing support should not be allocated evenly across all four distribution channels. Her boss suggests that they allocate the largest proportion of the marketing support to electronics specialty stores. Do you agree with this recommendation?
(Click to select) No, because electronics specialty store fixed costs are too high. Yes, because increasing cooperative marketing support will result in more sales. No, because the proportion of sales generated from electronic specialty stores has been declining over the past three years. No, because electronics specialty stores do not generate a sufficiently high return on sales. Yes, because electronic specialty stores generate the largest percentage of the firm's revenue.
4. Ophelia thinks they should reallocate $250,000 in cooperative marketing expense from both warehouse clubs and specialty stores to discounters, which she projects would result in a 30 percent sales increase in the discounter channel. Additionally, she feels they could charge a $60 price to discounters with the additional advertising. What would the new discounter channel percentage of total profit be after the change?
(Click to select) 54% 56% 47% 62% 42%
5. Starting with the initial values for the channels, assume that the current sales for warehouse clubs never reach 650,000 and only hit 500,000. The firm's goal is to achieve a 39 percent return on sales in each distribution channel. What modifications to price and marketing expense would help the firm reach its goal?
(Click to select) Keep the price at $45, but decrease the cooperative marketing expense to $250,000 Increase the price to $50 and decrease the cooperative marketing expense to $300,000 Increase the price to $53, but keep the cooperative marketing expense at $500,000 Increase the price to $49 and decrease the cooperative marketing expense to $350,000 Increase the price to $54 and decrease the cooperative marketing expense to $200,000
Gal YouTube Maps Translate News A Grade Nom MAE 5 OF 11 Warehouse Clubs Department Scores Discounters Special wala This Value Warehouse Clubs Department Stores Innal Value 2 Price 175.000 $ 29,250,000 5 12.750,000 $ 2.000.000 $ 19.500,000 O S 18 850 000 $ 5,075,000 $ 20,000 000 $ 700.000 Fbed costs $ 1,250,000 $ 1.250.000 1.250 000 $ 1.250.000 $ 5.000.000 1.250.000 250.000 $ 1250 000 $ 1.250.000 Cooperative marketing 5 500 000 $ 500.000 5 0 0.000 500.000 S 11.250.000) (1 250.000) (1 250.000) (1.250.000) $ 5.000.000 $ 5 21.250.000 9,950.000 8,650,000 30% 5.425.000 40% Return on sales Infinity Infin ity . Channel of quantity NaN Channel of total profit 25% 1315.000 235.000 550.000 225.000 305,000 550,000 235.000 225.000 Quality sold last year 100% Channel of quantity sold a year 18 310000 400.000 135.000 250.000 1,995.000 310.000 10 Quantity sold two years 250.000 135 000 400.000 37% 12% 100% 2) 2337 Channel of quantity sold two years ago) 125 Prey 1 of 1 Next > d-oee here to search Gal YouTube Maps Translate News A Grade Nom MAE 5 OF 11 Warehouse Clubs Department Scores Discounters Special wala This Value Warehouse Clubs Department Stores Innal Value 2 Price 175.000 $ 29,250,000 5 12.750,000 $ 2.000.000 $ 19.500,000 O S 18 850 000 $ 5,075,000 $ 20,000 000 $ 700.000 Fbed costs $ 1,250,000 $ 1.250.000 1.250 000 $ 1.250.000 $ 5.000.000 1.250.000 250.000 $ 1250 000 $ 1.250.000 Cooperative marketing 5 500 000 $ 500.000 5 0 0.000 500.000 S 11.250.000) (1 250.000) (1 250.000) (1.250.000) $ 5.000.000 $ 5 21.250.000 9,950.000 8,650,000 30% 5.425.000 40% Return on sales Infinity Infin ity . Channel of quantity NaN Channel of total profit 25% 1315.000 235.000 550.000 225.000 305,000 550,000 235.000 225.000 Quality sold last year 100% Channel of quantity sold a year 18 310000 400.000 135.000 250.000 1,995.000 310.000 10 Quantity sold two years 250.000 135 000 400.000 37% 12% 100% 2) 2337 Channel of quantity sold two years ago) 125 Prey 1 of 1 Next > d-oee here to searchStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started