Featuring the finest names in sports equipment and team uniforms.
#J and b sports full#
Include and explain any qualitative factors which may affect your recommendation. T & B Sports is your full service sporting goods dealer serving customers since 1946. Which plan do you recommend to management? Write a memo in the proper format which justifies your recommendation by providing relevant and appropriate supporting information. Why does the first plan result in the reduction in operating income that is greater than the $10,000 advertising?į. Determine the expected operating income under each proposed sales and marketing plan.Į. How much would operating income decrease if Sports-Strength did nothing to recover the increase in cost of goods sold, all other things being equal?ĭ. What was Sports-Strength’s margin of safety in units and dollars in the year ending 1 February, 2019?Ĭ. given the sale price and cost structure indicated in Exhibit 2)?ī. What is Sports-Strength’s breakeven point in units and dollars before any of the above changes take place (ie. Using the information in Exhibit 2 as a starting point, answer the following questions:Ī. The campaign is expected to generate an additional 10% in sales volume. As a result, they want to reduce the sales commission from 6% to 4% of sales and increase sales salaries by $22,000. Managers believe that the campaign will be more successful in generating new sales than the current incentive-based sales and marketing plan. The cost of the campaign is expected to be $5,000.
The campaign would include a new database that offers more potential customers than Sports-Strength has had access to in the past.
The second plan relies on a new advertising campaign that focuses on the sales price remaining the same as last year. Managers believe that $10,000 in additional advertising targeted directly to current customers will allow the sales force to reach the current year’s sales volume of 51,975 jerseys. The first plan calls for passing on the entire $0.50 cost increase to customers through an increase in the sales price. Managers have developed two possible plans and have asked you to evaluate them. In response to this increase, Sports-Strength is planning its sales and marketing campaign for the coming year. Sports-Strength has just received notice from J&B Sports that the price of a soccer jersey will be increasing to $15.30 next year. Activity 2: CVP Analysis for Sports-Strength
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