Successful Canadian manufacturer and distributor of jewelry involves entering the U.S. market and how best to do it. Students are required to: 1) identify costs related to the decision and to classify them as investments, fixed costs and variable costs, and 2) to calculate the contribution of the unit, the contribution margin ratio and average return on the contribution rate, and 3) to perform break-even analysis and interpret its value using the appropriate parameters, and 4) the profitability of the project chosen distribution strategy, and 5) to perform a sensitivity analysis with respect to the expected level of sales. Students need to understand and analyze the opportunities and risks associated with entering a new geographic market and combine qualitative and quantitative analysis in choosing a strategy of pursuing.
This is part of a set of cases Ivey and technical notes written for the introductory-level courses. "Hide
by Elizabeth M. Grasby Source: Richard Ivey School of Business Foundation 9 pages. Publication Date: May 15, 2007. Prod. #: 907B04-PDF-ENG
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