TheWho_M006_SectionIV - Revenue Drivers and Profit Margins...

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Revenue Drivers and Profit Margins Momma Mia’s primary revenue diver is monthly care packages filled with pregnancy items appropriate for the expecting mother’s trimester. An annual subscription includes nine baskets at $230 for the year. These care packages will account for 100% of our revenue. Customers will also have the option of enrolling in a monthly subscription of $50 per month or selecting a 3/6-month subscription, as well as an annual subscription. Fixed and Variable Costs Momma Mia’s fixed expenses include salaries, rent, utilities, personal phones, advertising expenses, legal/consulting fees, and insurance. Operating Leverage and Its Implications Momma Mia will most likely have fixed costs associated with running our business. Speaking in the terms, that almost anything can be considered as a variable rate due to its usage, I would like our readers to understand we are projecting our expenses to be stable. Our main fixed cost will be rent, website maintenance, insurance and utilities. Our variable expenses will be consulting fees to speaking experts. When estimating the timing of when to speak with these experts, we have to consider seasonality and new information coming into the market place. Website maintenance will be
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This note was uploaded on 01/02/2012 for the course EEE 457 taught by Professor Haynie,j during the Fall '08 term at Syracuse.

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TheWho_M006_SectionIV - Revenue Drivers and Profit Margins...

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