Business Administration 2257 Study Guide - Final Guide: Fixed Cost
11 Feb 2014
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Foxy originals homework for january 9, 2014 business 2257. Identify the pros and cons to launching the foxy brand in the u. s. Pros: 10x the market size than canada, if selling at the same price but in us dollars, it would negate risks associated with exchange rate fluctuations, greater opportunity for product exposure. Trade shows: owners could directly market the product, easier to manage, great networking opportunity, diverse attendance at these shows. However, start-up costs are high, so it would only be worth it if there could be enough sales to offset these costs. Sales reps: lower start-up costs; commission-based (thus it makes more sense to use this method if predicted sales figures are low). Less direct work from the owners; faster to penetrate the market: trade-show fixed costs (per trade show and for fiscal 2005). Categorize these costs as investments and fixed costs.
