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Foxy Originals: The Online Expansion
內容大綱
In 2014, the founders of a jewelry company, Foxy Originals, needed to decide how best to increase sales. The company sold its jewelry both online and through retailers across the United States and Canada. The founding partners had to decide whether they should focus more of their time and money on developing online sales or continue attending trade shows that attracted additional retail locations for Foxy Originals' products. Both partners wanted to ensure that they achieved a healthy work-life balance.
學習目標
This case is best taught in an introductory managerial accounting course at the undergraduate level. Objectives are: <ul><li>To identify costs relevant to the decision and categorize them as investments, fixed costs, or variable costs. </li><li>To calculate unit contribution, contribution-margin ratio, and weighted-average-contribution-margin rates. </li><li>To perform a breakeven analysis and interpret its meaning using relevant parameters (i.e., the potential number of orders trade shows/online sales could generate). </li><li>To project the profitability of each distribution strategy. </li><li>To perform a sensitivity analysis on the expected sales level for each distribution strategy. </li><ul>