Discussion slides Flashcards
1
Q
Current/Future Trends in SCM
A
Ethical Sourcing
Conflict-free minerals
Fair Trade
Labor Ethics
Recycling
Reverse Logistics
3-D Printing
Robotics
2
Q
Markup
A
The percentage difference between cost and selling price
3
Q
Margin
A
percentage difference between selling price and profit
4
Q
- What is your profit margin for selling the Badgers?
- You are selling Badgers. If you bought the Badger at a wholesale price of $45 and you markup all products by 30%, what price should you sell the Badger for?
A
45 x 1.30 = $58.50
(58.5 - 45) / 58.5 = 23.1%
5
Q
- Someone who bought a Badger from you (at $58.50) is selling it for $70.20. What is their markup?
- What is their margin?
A
- 20 / 58.5 = 1.2
(70. 2-58.5) / 70.2 = 16.7%
6
Q
•Let’s say you are also selling Wildcats with the same markup (30%) for $50.00. What is the price from the wholesaler (your cost)?
A
50/1.30 = 38.46
7
Q
Problems with Break-even analysis
A
Assumes any quantity can be sold at a given price
Total cost curve is assumed to be a straight line
8
Q
A company has total fixed cost of $500,000. Its per unit variable cost is $5.00, and its price per unit is $10.00. What is the break-even point in sales dollars?
A
1,000,000
9
Q
A
