Quantitative Analysis : Trade Shows Essay

3. Identify all costs, other than variable costs, for the trade show distribution strategy. Categorize these costs as investments and fixed costs (per trade show and for fiscal 2005).

Breakeven Analysis for Product Tylenol Approach 1 - Same price as Tylenol Approach 2a - Cheaper than Tylenol Approach 2b - Cheaper w/lowered trade cost $ $ $ $ Unit Cost (Variable Cost) 0.60 0.60 0.60 0.60 Trade Cost (Selling Price to Retailers) $ 1.69 $ 1.69 $ 1.05 $ 0.70 Fixed Cost (Advertising) 2,000,000 6,000,000 6,000,000 6,000,000 Break-Even Quantity [Fixed Cost/(Trade Cost-Unit Cost)] 1,834,862 5,504,587 13,333,333 60,000,000 Contribution Margin (Unit) 64% 64% 43% 14%

Drinking age is not a strange phrase in our lives. Every time when we go to club or buy some liquor, we have to show our photo ID to prove that we have already 21 and we are legal to drink wine. I think this is a really good method to control drinking problem. Before I read these two articles which are “The 21-Year-Old Drinking Age: I Voted for it, It Doesn’t Work” by Dr. Morris E. Chafetz and “The Drinking Age of 21 Saves Lives” by Toben F. Nelson and Traci L. Toomey, I only felt that when people grow up they will have self-control to hold their desire for drinking and could decide whether it is appropriate to drink at that moment. I didn’t collect any data or information to support my opinion,

Exhibit 5 shows the breakdown of fixed costs. Exhibit 6 shows corresponding contribution margin for compensation based on a fixed fee as well as a 100% variable fee. If we assume Alltel would pay the talent 90% of ticket prices, which would vary slightly depending on talent, while maintaining the same facilities charge and service charge, the total contribution margin drops form $37 per paying customer to just over $15.While this is not ideal, the benefit is the reduction in up front expenses required. By going to 100% variable compensation Alltel no longer has a substantial fixed cost associated with paying the talent. Since Alltel only received ~10% of sales, we would suggest Alltel no longer handle the promoting, saving them another $20k in fixed advertising cost. The talent would now be in charge of the promotion. They would have the most to gain from the promotion as they would retain 90% of sales. Hiring a promoter would have its own ROI calculation and Alltel could certainly continue to offer the services but with a fixed price outsourced model or affiliate variable compensation model negotiable with each event. Alltel is not a true promoter and this would allow them to focus attention on their core business and let true promoters promote. The net result of this is a contribution margin 38% and a breakeven of 5264 paying customers. This is down from the previous breakeven of 8341. We would describe this process of

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

J. M. Smucker Company is a relatively old one. It was established in 1879 as a small business that catered to the local population . As business grew and transportation routed between cities became larger and easily accessible, Smucker's began to produce its other lines of products. These include; jams, jellies, preserves, ice cream toppings, peanut butters, beverages, and today they now supply ready made sandwiches. All the products provided by Smucker's are all food industry products that are sold steadily throughout the year with their peak time in the fall when children return to school. Smucker's also sells its products through many mediums such as supermarkets, schools,

Calculate the variable costs per order received at a trade show and the variable costs per order received through a sales rep.

The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the

Using $8.50 as the variable cost provided at the bottom of the case study and using $39.95 as the retail selling price as compared to $23.97 as the wholesale selling price (60% of the retail price), ServiSoft will realize a contribution margin of $31.45 with the retail distribution channel versus $15.47 with the wholesale distribution channel.

\Sam Johnson is the owner of a medium-size electronics company, Integrated Electronics Manufacturing (IEM), which produces high-grade electronic modules used by several major electronics manufacturers to produce a variety of military and commercial telecommunications devices such as aircraft radios, navigational equipment, land-based satellite receivers, and other items. IEM has 60 employees. Normally, IEM purchases electronic parts such as resistors, capacitors, circuit boards and enclosures from several different suppliers and assembles the modules in its own facility. Some of the parts, like circuit boards and enclosures, are built to IEM engineer’s specifications while others are “off the shelf”.

Upon entering the exhibit the viewers will be presented with information that shows the immense diversity within the continent of Africa; this is shown through pictures. It is important to equip the viewers with general knowledge of Africa so they can go through the exhibit with a basic foundational understanding. The overall topic of the exhibit is the promotion of children's rights through the ACRWC's Articles 15 – 17. The Articles are the three major sub-themes; the right to work, health, and education. These three specific articles were chosen because of the impact they play in the development of African children. The right to education is the focal point of the sample module. The right to education is important for children;

Our report examined Foxy’s U.S. expansion, which is occurring due to oversaturation in Canada, and whether it should be executed by use of a trade show distribution strategy with high fixed costs, or a sales representative distribution strategy with low fixed costs.

The relationships with trade show retailers are highly valuable in that they often prove to be long term. Re-orders by retailers from trade shows occur at a 50% clip, and they will re-order twice per year. With an average order from a retailer being $569 (Table 1), and the direct material and labor cost fixed at $267, the contribution margin per order at trade shows will be $302 (Table 2).

In vertical analysis, it is easier to see elements as a percentage of Revenue. Between 2011-12, the portion that cost of sales takes in revenue has increased however, there is a bigger deterioration in distribution cost. In 2011, 9.21% of revenue remains as profit but in 2012 this figure decreases to 8.14%. Despite reduction in costs is one of the strategies of Ted Baker(part 1.4), analysis illustrates that costs increase each year.

After making some wise short-term investments at a race track, Chris Low had some additional cash to invest in a business. The most promising opportunity at the time was in building supplies, so Low bought a business that specialized in sales of one size of nail. The annual volume of nails was 2,000 kegs, and they were sold to retail customers in an even flow. Low was uncertain of how many nails to order at any time. Initially, only two costs concerned him: order-processing costs, which were $60 per order without regard to size, and warehousing costs, which were $1