Entertainmentnow.Com Case Study

1507 words 7 pages
Entertainmentnow.com Case Study
Dr. Zelazny
Accounting 3365.001
November 26, 2012

Group Members:
Katherine Barr
Jerrod Wesley Cameron
Brenton Stalcup
Emily Wenzlaff

Company Overview/Main Case Concepts
Entertainmentnow.com is an international Internet retail Website offering an array of books, music, videos, DVDs, toys, and small electronics. The company has historically marketed and sold to individual consumers, but has recently expanded their market to serve corporate and institutional customers as well. The company purchases products from vendors, holds the products in inventory, and then fulfills customer orders directly. This business model is similar to Amazon.com’s, making them one of the company’s main competitors.
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Actual Actual vs. Planned Cost Differences | Per Unit Cost Difference | Revenue | $(0.17) | Costs of goods sold | $0.06 | Fulfillment | $(0.03) | Marketing | $(0.05) | General and administrative | $0.02 | Technology and Content | $(0.01) | Depreciation Expenses | $0.02 | Net Loss Per Unit Sold Difference | $(0.16) | Variable Costs | Cost/Unit | Costs of goods sold | $12.03 | Fulfillment | $2.53 | Marketing | $0.83 | Total Variable Cost/Unit | $15.39

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