Revenues and profitability

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You choose the company and the new product that you want to showcase in your presentation. It can be real or fictitious (based on an industry). This is for background purposes only. The presentation is to showcase your abilities and what you can contribute to the organization.

IBIS World (https://www.ibisworld.com) and BizStats (http://www.bizstats.com) have estimates of cost of goods sold and some other categories of operating expenses. Information about contribution margins is not available, but adding new products typically mean incurring both fixed and variable costs.

Consequently, cost of goods sold is a reasonable estimate. Net operating income as a percentage of sales or some variation thereof may also be relevant if the new product is expected to contribute significantly to the bottom line. As a candidate for a position you would not have internal information available, but being resourceful and being a skilled researcher are desired traits for the position. IBIS World also has a wealth of other market statistics that may be helpful. Use listed background material and other resources as needed

(6 slides)

Required:

Include the following items in your presentation:

1What about special pricing for some markets or customers?

2Determination of customer profitability.

3Show effect on revenues and profitability based on stated assumptions.

4Potential advantages and disadvantages, both financial and non-financial.

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