Assignment:
Product Mix and Margin Analysis
Watch the "Product Mix and Margin Analysis" section of the animation and analyze the profit margin and cost of goods sold.
Animation-https://media.capella.edu/CourseMedia/BUS4080/momandpop/momandpop.asp
Analyze the impact the product mix has on the profit margin.
Develop at least two strategies for improving the product mix to maximize profit.
Develop a merchandising plan to hit the selected profit margin.
The main objective of any business is to make money. To be profitable, products must be sold at high enough margins to cover expenses. Analyzing many factors such as retail trends and customer demographics is essential to determining the ideal profit margin. Retail managers must be able to analyze all the factors affecting the business to determine the appropriate selling prices for their goods to make a profit.
In this unit, you will determine an appropriate product mix for your small country store as well as analyze how product mix impacts your marketing strategies.
Product Mix and Margin Analysis
Analyzes profit margin and cost of goods sold.
Analyze the operation of the business.
Analyzes product mix and impact on profit margin.
Describes relationship between product profit margin and business profits.
Develops two or more strategies for improving product mix to maximize profit margin.
Develops merchandising plan to hit selected profit margin.