Marketing Arithmetic

Question 1

Unit Contribution (Margin) Equation

Answer 1

Per unit revenue (selling price of product) - variable cost per unit

Question 2

Profit Margin (%)

Answer 2

Per unit revenue (selling price of product) - variable cost per unit/ per unit revenue

Question 3

Breakeven Quantity (Volume)

Answer 3

Fixed costs (or added costs) in dollars/unit margin in dollars

Question 4

Profit Impact

Answer 4

(Unit Margin * Units Produced and Sold) – Fixed Costs

Question 5

Trade Discount

Answer 5

Suggested retail margin