Provide a 2 to 3 page summary in which you properly evaluate the given scenario and offer possible improvements. Grade is based on how well you articulate your arguments, the degree to which you provide viable alternatives and how well you provide support for your chosen alternative.
For your case write up, please consider the following:
1) Discuss the pros & cons of each sales channel
2) compute contribution margin for each channel
3) compute break even point (in terms of number of orders and dollars) for each distribution channel
(HINT – Fixed costs are all trade show expenses. Use depreciation for the booth as a fixed cost. The booth cost should be considered an investment not a fixed cost)
4) Calculate the number of orders at a target profit of $100,000
5) Calculate the profitability for both the low and high order estimates