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    Foxy 2020 B

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    The document compares selling jewelry through distributors at trade shows versus selling online directly to consumers. Selling at trade shows requires a larger minimum order but has higher profit margins per unit. To break even at trade shows the company would need to sell 312 units, while to break even online they would need to sell over 1,300 units. However, to earn the desired profit of $100,000 they would need to do around 644 orders at trade shows but over 2,700 orders if selling online. Therefore, selling at trade shows requires fewer total units to achieve the profit goal.

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    Foxy 2020 B

    Uploaded by

    aaaa
    14 views2 pages
    The document compares selling jewelry through distributors at trade shows versus selling online directly to consumers. Selling at trade shows requires a larger minimum order but has higher profit margins per unit. To break even at trade shows the company would need to sell 312 units, while to break even online they would need to sell over 1,300 units. However, to earn the desired profit of $100,000 they would need to do around 644 orders at trade shows but over 2,700 orders if selling online. Therefore, selling at trade shows requires fewer total units to achieve the profit goal.

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    The document compares selling jewelry through distributors at trade shows versus selling online directly to consumers. Selling at trade shows requires a larger minimum order but has higher profit margins per unit. To break even at trade shows the company would need to sell 312 units, while to break even online they would need to sell over 1,300 units. However, to earn the desired profit of $100,000 they would need to do around 644 orders at trade shows but over 2,700 orders if selling online. Therefore, selling at trade shows requires fewer total units to achieve the profit goal.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    14 views2 pages

    Foxy 2020 B

    Uploaded by

    aaaa
    The document compares selling jewelry through distributors at trade shows versus selling online directly to consumers. Selling at trade shows requires a larger minimum order but has higher profit margins per unit. To break even at trade shows the company would need to sell 312 units, while to break even online they would need to sell over 1,300 units. However, to earn the desired profit of $100,000 they would need to do around 644 orders at trade shows but over 2,700 orders if selling online. Therefore, selling at trade shows requires fewer total units to achieve the profit goal.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Currently: (B2B)

    - Operating through distributors (trade shows) - Evaluating the option of going online (B2C)
    > Travel > Online market was picking up
    > US Market: 10% to 70% in 2 years > May miss the bus

    Partners want to make a profit of 100,000


    Volume required to break-even? To make the desired profit?
    Trade Shows Online (SP =final retail price)
    Necklace Earrings Order Necklace Earrings Order
    Order size 25 12 2 1
    SP/unit 17 12 569 34 24 92
    VC/unit 8.05 5.5 267.25 8.05 5.5 21.6
    Cont/uni 8.95 6.5 301.75 25.95 18.5 70.4
    Contribution-Margin ratio // P-V Ratio 0.530316 0.765217

    Total Fixed Costs


    Per show Per year (10 shows)
    Booth cost4000/30 133.3333 1333.333 Non-recurring Fixed cost 93000
    Registration charges 3000 30000
    Travel costs 2000 20000
    Booth shipping 1500 15000
    Samples and promos 2800 28000
    Total Fixed costs 9433.333 94333.33

    Unit: One order of 25 necklace and 12 earrings


    Break Even point (units) 312.6208 Break Even point (units) 1321.023
    Break -even point ($) 177881.2 177881.2 Break -even point ($) 121534.1

    Volume required to earn desired profit of 100,000 Volume required to earn desired profit of 100,000
    Desired profit 100000 Desired profit 100000
    Contribution desired 194333.3 Contribution desired 193000
    Cont / order 301.75 Cont / order 70.4
    No of orders 644.021 No of orders 2741.477
    Sales value 366447.9 366447.9 Sales value 252215.9
    g online (B2C)

    Rev/unit
    Less: VC/unit
    Cont/unit
    * Vol
    Total Con
    Less: FC / year

    121534.1

    d profit of 100,000

    252215.9

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