| Title | : | Foxy Originals - Expansion into the U.S. Market |
|---|---|---|
| Author | : | Elizabeth M.A. Grasby |
| Release | : | 2007-05-15 |
| Kind | : | ebook |
| Genre | : | Industries & Professions, Books, Business & Personal Finance |
| Size | : | 738057 |
| A successful Canadian jewelry manufacturer and distributor contemplates entering the U.S. market and how best to do it. Students are required to: 1) identify costs relevant to the decision and categorize them as either investments, fixed costs or variable costs; 2) calculate unit contribution, contribution-margin ratio and weighted-average-contribution-margin rates; 3) perform a breakeven analysis and interpret its meaning using relevant parameters; 4) project profitability of a chosen distribution strategy; and 5) perform sensitivity analysis with respect to the expected sales level. Students are required to understand and analyse the opportunities and risks associated with entering a new geographic market and combine their qualitative and quantitative analysis when deciding which distribution strategy to pursue. |
