Arrow Case Study

Jake Wright

7/6/14

HW #2

QUESTION 1: Please complete the following Table by filling in the missing numbers.

| |TRANSACTIONAL |RELATIONSHIP |TOTAL |
|VA PRODUCT SALES |$ 284.50 |$1158.50 |$1443 |
|B&S PRODUCT SALES |$293 |$574 |$867 |
|TOTAL |$577.50 |$1732.50 |$2310 |

QUESTION 2: How much is Arrow’s GROSS MARGIN before the Express Proposal? (Please show how you calculate it) Is it higher than the goal of 15%?

Gross margins on BAS products 20-25%, assume 22.5% for calcs

Gross margins on VA products 10-15%, assume 12.5% for calcs

|BAS Product |22.50% |$867 | |
|VA Product |12.50% |$1,443 | |
| | | | |
|BAS Product | | | |
|22.50% | | | |
|$867 | | | |
| | | | |
| | | | |
|VA Product | | | |
|12.50%