marketing formulas

Question 1

individual market share %
—————————————- x 100
largest industry market share %

Answer 1

relative market share

Question 2

unit sales #
———————————– x 100
total market unit sales

Answer 2

unit market share %

Question 3

sales revenue $
—————————————- x 100
total market sales revenue

Answer 3

revenue market share %

Question 4

= new - original
———————————- x 100
original

Answer 4

percent change

Question 5

• is the cost of goods sold
• the more a business produces and sells the more it can expect to have its variable cost increase

-example: raw materials, direct labor, shipping charges, commission

Answer 5

variable costs

Question 6

• expenses or costs that do not directly increase with an increase in production and sales
• the cost incurred for this purchase remains constant, irrespective or wether the business produces zero units or 20,000 units in a specific day

Answer 6

fixed costs

Question 7

define percent change

Answer 7

percent change measures the increase or decrease of a value or quantity over a period of time

Question 8

define contribuition margin

Answer 8

A component of price that tells us when we will end up covering our fixed costs, and get to a stage of profitability (break-even analysis