A Multi-brand store that offers a space for local designers to display their work. The store offers the space with a monthly/quarterly and annual rent. The store is adapting two strategies for marketing and willing to drop the less profitable one. The First is to offer a space for more renowned designers free of charge to attract new designers to showcase their work in the same store and charge them relatively high price. he renowned designer free space will eliminate the need to promote and advertise the store. The other strategy renting all the space in the store with relatively reasonable price and spending more on advertising and promotion instead of using the name strong brands to attract more customers.
The other sector (to demonstrate a product using same example of chapter 3 using cost in decision making question Tree case manufacturing three different types of products) is going to establish a Café so Customer can feel free to roam or wait for a certain designer to come up, also can help to increase our profits and attract more customer if they are accompanied by their family or friends.
Restaurant is our third option, if to facilitate and offers food while others can wait for the designer to arrive or any who accompanied his family has the option to grab something to eat while waiting for his friend and family do his shopping.
1- Revenues
2- Fixed cost: store rent, employee’s salary.
2- variable cost is advertising, waiving space charge for renowned designers.
3- Contribution margin and it will affect if we discontinued the Restaurant or the Café. If the fixed cost is avoidable or if we eliminate the unit.
4- Calculating the breakeven point U.S. dollars and the margin of safety.
5- Forecasting sales of our food products.
6- This scenario is focused on eliminating the restaurant area and expanding the space available for the multi brand store and café.
Please refer to the pdf file that is attached to apply these assumption using Buddy’s bar grill example or the manufacturing company Tree example on pages 19of 27-22of 27. The question and answers are attached I would like to implement my case as a multistore that have a designer stands to rent and restaurant and a cafe three products. to these examples just change the numbers or figure cme own your own numbers and assumptions.
The word document is to give you an idea of our project is about thank you.
