Session 2 Marketing Math 9/10

Question 1

Kinds of Costs

Answer 1

Total Cost
Variable Cost
Fixed Cost

Question 2

Break Even Volume occurs when:

Answer 2

Total Revenue= Total cost
Fixed Cost/ Margin Per Unit
FC/ (P-UVC)

Question 3

Unit Contribution

Answer 3

Unit Contrib = Margin Per Unit= (P-UVC)

Question 4

Profit

Answer 4

Total Rev- Total cost

Question 5

Fixed Cost–

Answer 5

*Can include things like anticipated profit

Question 6

Margin–

Answer 6

Margin = Selling price - Price paid (cost)
Manufacturerʼs margin = $2000 - $1000 = $1000
Wholesalerʼs margin = $3500 – 2000 = $1500
Retailerʼs margin = $5500 - $3500 = $2000

Question 7

Margin Percentage

Markup Percentage

Answer 7

Margin percentage: ((P - VC) / P) × 100

Markup percentage: ((P - VC) / VC) × 100

Question 8

Market Share

Answer 8

Market Share
= US / (US + THEM)
= Q / Market Size
If we sell 100 units and the market size is 200 units, what is our market share? 50%
If we have a 20% share of a 1 million unit market, what is our quantity? 200,000 units