02 Dec profit/loss
9102In this activity, you will create a Worksheet/Spreadsheet to help you understand some of the financial considerations marketing managers must think about when calculating costs/expenses and projected revenue for introducing a new product to the marketplace. COSTS: Think about the product you and your team are planning on introducing to your target market. What do you think are some of the specific variable and fixed costs you need to consider? In this spreadsheet worksheet, there are a number of line items listed. Some of these are not pertinent to your product.
Now look at projecting revenues for a new product implementation. Assuming your product will hit the market on January of the next year, project what you think your product will bring in revenue over the first year by month; the 2nd year by quarter and the 3rd year by quarter. For example, if your product is a new type of running shoe and you are implementing it regionally starting in New England, you likely will sell more in the spring and summer than in the winter. Think about those kinds of variations when doing your projections by month and by quarter.
ONCE you have completed your projections, make a copy and compare your ideas with your team members’ ideas. Then discuss your results and arrive at a final projection of costs and revenue as part of this week’s Team Project Strategy Plan assignment.
– The introductory cost of Nike BlueJay Cross Trainer sneakers is $200, the price can drop as low as $160. It is projected that each pair of sneakers cost $28.50 to make
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