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Essay's paper info
| Topic: |
Biographies
|
| Number of pages / Number of words: |
5 / 1150 |
Essay's paper body
The first alternative is to enter the "weekend" segment of the hiking boot market. As I plug and chug the number for the first alternative, I found that this alternative would not be beneficial to the company. Even though this alternative will increase demand due to its low price strategy but cost for the WX 450 boot is higher than the price charged to retailers...
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This alternative will give the company a negative gross margin.
Project 1 Project 1
Costs Price
Year WX 550 WX 450 Year WX 550 WX 450
1997-98 $697,850 $1,045,075 1997-98 $730,690 $848,355
1998-99 $617,403 $924,309 1998-99 $652,733 $757,606
1999-00 $379,643 $568,337 1999-00 $405,265 $470,358
2000-01 $259,605 $391,497 2000-01 $279,816 $327,150
2001-02 $193,728 $294,658 2001-02 $210,838 $248,618
Total costs= $2,148,229 + $3,223,876 = $5,372,105
Total price= $2,279,341 + $2,652,087 = $4,931,428
Contribution margin= $5,372,105 - $4,931,428 = (440,677)
2...
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