Typical Exam Question Imagine you are raising money for your sorority

# Typical exam question imagine you are raising money

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“Typical Exam Question”Imagine you are raising money for your sorority / fraternityYou have created a calendar that has Columbia-related photographs that your sorority/ fraternity members took. You have two options facing you (see below)Which option brings in more profit? (A) A (B) B (C) need more info Option A: Sell a 12-page black-and-white calendar, a separate month on each page. You can sell between 100-200calendars. You will charge \$10/ calendar. Your margin is 50% and your fixed cost (set-up fee) is \$100Option B:Sell a 6-page color calendar, two months on each page. You will sell 100 calendars. You can charge between \$20-30/ calendar. Your variable cost is \$10/calendar and your fixed cost (set-up fee) is \$200
The data – another look Option A -least profit Option A -most profit Option B -least profit Option B -most profit Quantity 100 200 100 100 Price \$10 \$10 \$20 \$30 Variable Cost \$5 \$5 \$10 \$10 Fixed Cost \$100 \$100 \$200 \$200 Profit \$400 \$900 \$800 \$1800
Solving the problem Option A: Least profit = \$400 Most profit = \$900 Option B: Least profit = \$800 Most profit = \$1800 Profit (Option A) >=< Profit (Option B) More info needed
Breakeven analysis! Fit Deck Shark Tank Season 5 Week 15
Plan for this week Segmentation-Targeting-Positioning (bit more detail) Break-even analysis Consumer Behavior
The Consumer Decision Process Need Recognition Functional needs Psychological needs Royalty-Free/CORBIS ©Digital Vision/PunchStock
The Consumer Decision Process Search for Information Courtesy of Refinery29.com.
Factors Affecting Consumers’ Search Process (Perceived) Benefits (Perceived) Costs
Actual or Perceived Risk
The Consumer Decision Process Evaluation of Alternatives: Attribute Sets
The Consumer Decision Process Evaluation of Alternatives: Consumer Decision Rules Cheerios 10 8 6 8 8.2 Post 8 9 8 3 7.1 Kashi 6 8 10 5 7.2 All photos: ©M. Hruby. Compensatory
The Consumer Decision Process Evaluation of Alternatives: Consumer Decision Rules Cheerios 10 8 6 8 8.2 Post 8 9 8 3 7.1 Kashi 6 8 10 5 7.2 All photos: ©M. Hruby. Non-Compensatory

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