Foxy Originals 1. Discuss the pros and cons to launching the Foxy brand in the U.S.
Pros: Kluger and Orol had established strong Foxy jewelry market in Canada but it is getting saturated. By expanding into the United States Foxy would be able to avoid oversaturation of the Canadian market. The U.S. jewelry market was almost 10 times larger than the Canadian market which offers great opportunity for their product exposure. With this expansion, Kluger and Orol could expand their production as well as possibly begin developing new product lines. Foxy is currently experiencing a steady growth period in sales so expansion to a new market at this time would be a good way to capitalize on this growth. By expanding into the US Foxy could
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Do the variable costs for both products (necklaces and earrings) differ between trade shows and sales rep strategies? Yes, the variable costs for both products differ between trade shows and sales rep strategies. Variable cost per order is greater in the sales rep strategy compared to that in the trade shows strategy because of the added sales rep commission in the former strategy. The commission is 15% of the sale to the retailers. The sale price to the retailer is $17 for the necklace and $12 for the earrings. The increased variable cost would then be $2.55 and $1.80, respectively, when compared to the trade show strategy.
6. Calculate the variable costs per order received at a trade show and the variable costs per order received through a sales rep.
Variable Costs | Trade shows | Sales rep strategy | per necklace | | $ 8.05 | | $ 8.05 | | per earring pair | $ 5.50 | | $ 5.50 | | Production costs per order | $ 267.25 | | $ 267.25 | | Shipping per order | $ 15.00 | | $ 15.00 | | Sales rep.
3. Describe two methods that you can use to calculate postage charges for mail and / or packages.
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).
1- The total unit cost = Total Variable Cost + Production Fixed Expenses + Advertising Expense + Selling and Administrative Expense = 3.23 + 1.20 + 0.30 + 0.19 = 4.92.
Cost-plus pricing puts many distributors in a difficult position. Unless distributors manufacture the medical supplies they sell, they have difficulty offering competitive prices to customers while continuing to make reasonable profit margins. Applying only the cost-plus pricing method forces distributors to absorb the costs associated with holding, managing, and delivering inventory, regardless of the variations in weight, size or handling difficulties among different products. This is in addition to
1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?
3. Describe two methods that you can use to calculate postage charges for mail and / or packages. [2.3]
The 2 for 1 deal would be better for exhibitors than a straight reduction in price, because with the deal you are able to double the attendance which allows consumers to see more of what you have to offer. Consumers are always looking for a bargain, so a 2 for 1 deal will appeal to the customer more than a reduction in price, as they perceive that they are getting more than what they are paying for. Consumers will feel as if they are saving money, which may help increase sales in refreshments.
= Unit Selling Price – Unit Variable Cost = $9.00 – ($1.25 + $0.35 + $1.00) = $6.40
2.) For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour.
Manufacturers utilize trade promotions to encourage retailers to purchase their products. The primary types of trade promotions are trade allowances, trade incentives, trade shows, and trade contests. Each type of promotion provides manufacturers with a unique opportunity to stimulate sales. Trade allowances for instance provide retailers with discounts on their invoices. According to Clow & Baack (2014), “Approximately 35% of all trade dollars goes to off-invoice allowances” (p. 341). Trade allowances also include spotting fees and exit fees. These are fees that the manufacturer pays to the retailer to stock a product or remove a product from the shelf. It is assumed that retailers will pass on these discounts to the consumers,
a. For an annual volume of 12,000 tires, determine the total cost, total revenue, and profit.
3) Using the budget Data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocate to planned production? What was the actual cost per unit of production and shipping?
1. Discuss the pros and cons to launching the foxy brand in the United States.
Do the variable costs for both products (necklaces and pairs of earrings) differ between trade shows and sales representatives?