Discussion:
With te help of below table and attachment complete the following:
In this simulation, you are about start selling a new product, an MP3 player (YourPlayer). Management has provided you with a proformance income statement to help assess the viability of the product. They need your help to complete the income statement.
There are four decisions to make.
- Sample pricing was obtained from several places in the country. Use this data (on the second tab) to guide your selection of a sales price for your product. Enter this number in the highlighted cell D6.
- Sample sales volumes (the number of units sold in other regions) were also collected. Use this data (on the third tab) to guide you in how many you think you will sell. Enter this number in the highlighted cell D8.
- You have an opportunity to outsource. If you elect to outsource, change the highlighted cell D10 to 0.68 and the highlighted cell I16 to 25000.
- If you elect to outsource, you have select from a location in either the Philippines or Thailand. Summary statistics for the manufacturing expense of a similar product was collected monthly for the past five years. The expense fluctuates because of quality issues, availability of trained staff, and downtime. Using this data, select a manufacturing site.
Write a brief description of how you picked your pricing and sales volume.
Write a brief description of how you selected a site.
| Decisions |
| |
|
|
| |
Selling Price |
$50 |
| |
|
|
| |
Sales |
20 |
| |
|
|
| |
COGS |
83% |
| |
|
|
| |
|
| |
|
|
|
| Sales Revenue |
$100,000 |
| Service Revenue |
$12,000 |
| Total |
$112,000 |
|
|
| COGS |
$83,000 |
| Cost of Services |
$2,640 |
| Total |
$85,640 |
|
|
| Gross Earnings |
$26,360 |
|
|
| SG & A |
$10,000 |
|
|
| Taxes |
$6,544 |
|
|
| Net Income |
$9,816 |
|
|
| Gross Profit Margin |
24% |
|
|
| Net Profit Margin |
9% |
Attachment:- distribution.rar