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Your responses to these questions must be submitted through Turnitin on Blackboard. See the Syllabus for further information.
1. Identify all fixed costs for the trade show distribution strategy. Categorize these costs per trade show and for all trade shows for fiscal year (FY) 2014/15).
2. Identify all fixed costs for the online distribution strategy for FY2014/15 assuming the partners decide not to attend any trade shows.
3. Determine the variable costs for both products (necklaces and pairs of earrings) for a trade show sale and an online sale?
4. Calculate the variable costs per order incurred at a trade show and the variable costs incurred per online order.
5. For each distribution strategy, calculate the unit contribution for each of the two product lines (necklaces and pairs of earrings). What is contribution margin for an order at a trade show and for an online order?
6. Calculate Foxy’s breakeven point in volume and sales dollars for each distribution strategy.
7. Calculate the volume and sales dollars that would be necessary for each distribution strategy for Foxy’s to achieve a target profit level of $100,000.
8. Which distribution channel is projected to be more profitable in 2015?
9. As Ger and Chemel, would you follow the trade show or online order distribution strategy? Why?
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