quntative analysis

Question 1

market share

Answer 1

the percentage of the total market that your brand controls. sales or units
your brand sales in dollars/ total sales for all brands in dollars

Question 2

step down analysis

Answer 2

when we estimate our market share

Question 3

costs

Answer 3

money you are spending

Question 4

revenue

Answer 4

money that is coming in

Question 5

profit

Answer 5

revenue minus costs

Question 6

profit margins

Answer 6

profit expressed as a percentage of revenue

Question 7

cost per unit=

Answer 7

fixed costs plus variable costs

Question 8

what are fixed costs

Answer 8

costs that do not vary with how many units you make (lease for factory, product r an d, ceo salary, tv ads)

Question 9

variable costs

Answer 9

costs that do vary with the level of production
ex: raw materials , cost of packaging, salary of salespeople)

Question 10

contribution margin

Answer 10

how much money from the sale is left after accounting for the variable costs. this money can be used to cover paying off fixed costs we investedd in

Question 11

contrbtuon per unit=

Answer 11

price per unit- variable costs per unit

Question 12

contribution margin

Answer 12

price per unit- variable costs per unit/ price per unit

Question 13

profit margin

Answer 13

the profit expressed as a percentage of the sales price

Question 14

profit oer unit

Answer 14

price per unit- all costs per unit(fixed- variable costs)

Question 15

profit margin formuyla

Answer 15

price per unit - all costs per unit/ price per unit

Question 16

markup on cost

Answer 16

how much is the price increased (marked up) by the retailer, relative to what they paid to the wholesale distributor (their variable costs per unit aka cogs)

Question 17

markup on cost formula

Answer 17

price per unit- variable costs per unit/ variable costs per unit

Markup on cost is a pricing strategy used by businesses to determine the selling price of a product based on its production cost.

Question 18

what is break even

Answer 18

at which cost and revenues are equal. there is neither a profit nor loss

Question 19

break even formula in units

Answer 19

total fixed cost/ price - variable cost

Question 20

break even formula in dollars

Answer 20

total fixed cost/ contribution margin as a percent

Question 21

price elasticity

Answer 21

measures how responsive demand is to a change in price

Question 22

price elasticity formula

Answer 22

percentage change in demand/ percentage change in price

Question 23

percentage change formula

Answer 23

new- old/old

Question 24

what do the signs of price elasticity show

Answer 24

show the relationship between price change and demand change

Question 25

what does the number of price eladtciyt show

Answer 25

describes the elatsity itself

Question 26

PE<1

Answer 26

price inelastic

Question 27

PE>1

Answer 27

price elastic

Question 28

PE=1

Answer 28

unit elastic, mid point between high elasticity and low elasticity. changing the price has no impact on profit

Question 29

inrease In price

Answer 29

decrease in demand

Question 30

what is cross price elasticity

Answer 30

measures the effect of a price change of one product on the demand change of a second product

Question 31

if two products are subsitiuyde products

Answer 31

a price increase in one product will lead to a price increased in demand in the other (ex: butter vs margarine, Netflix vs Disney ). cross price elasticity is positive

Question 32

if two products are complementary products

Answer 32

a price increase in one product will result in a decrease in demand for the other (razors and blades, hockey sticks and hockey pucks ). cross price elasticity is negative

Question 33

cross elasticity formula

Answer 33

percentage change demand of p2/ percentage change price of p1

Question 34

what are price chains

Answer 34

are a tool for seeing how prices increase, and contribution margins are split, as products pass through these intermediaries

Question 35

what’s the order for price chains

Answer 35

manufacter, wholesaler, retailer, consumer

Question 36

break even market share

Answer 36

the break even dollars/ total market share