1. Indentify 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)
2. Identify all costs, other than variable costs, for the sales representatives’ distribution strategy
3. Do the variable costs for both products (necklaces and pairs of earnings) differ between trade shows and sales representatives ?
4. Calculate the variable costs per order received at a trade show and the variable costs per order received through a sales representative
7. For each distribution strategy, calculate the unit contribution and contribution margin rate for each of the two products lines ( necklaces and pairs of earnings). What is the weighted average contribution margin for an order at a trade show and an order with a sales representative ?
8. Calculate Foxy’s breakeven point for each distribution strategy
9. which distribution channel will be more profitable in 2005?
10. Choose a distribution strategy ( trade shows, sales representatives or both) based on your qualitative and quantitative assessment
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