Appendix 2: Marketing by the Numbers

A company has fixed costs of 20 million, variable costs of 125 per unit, and expects to sell 1 million units. What is the unit cost?

Which of the following best defines relevant costs in the context of marketing financial analysis?

A company has a unit cost of 145 and wants to earn a 25 percent markup on sales. What is its markup price?

A company has a unit cost of 145, expects to sell 1 million units, and wants a 30 percent return on its initial investment of 10 million. What is the required ROI price?

What is the key difference between a markup chain and a value-based pricing approach?

A product has a suggested retail price of 300. The retailer's margin is 30 percent and the wholesaler's margin is 20 percent, both based on their selling prices. What is the manufacturer's price to the wholesaler?

If a company has fixed costs of 20 million, a price to wholesalers of 168, and a unit variable cost of 125, what is its break-even volume in units?

What does the 'contribution margin' represent in financial analysis?

What is the primary function of a pro forma profit-and-loss statement in marketing?

According to the appendix, which of the following is defined as Net Marketing Contribution (NMC)?

Based on the actual performance data for HD, with net sales of 100 million, cost of goods sold of 55 million, and marketing expenses of 41 million, what is the Net Marketing Contribution (NMC)?

What does the Marketing Return on Investment (Marketing ROI) measure?

Using the actual performance data for HD, with a net marketing contribution of 4 million and marketing expenses of 41 million, what is the Marketing Return on Investment (Marketing ROI)?

What is the term for the situation in which one product sold by a company takes a portion of its sales from the company's other products?

In the Hair Zone example, the new foam product has a selling price of 2.25 and variable costs of 1.25. The original gel has a selling price of 2.00 and variable costs of 0.85. What is the loss in contribution for each unit of gel that is cannibalized by the new foam?

To break even on an increase in fixed costs of 5 million, a company must generate an increase in sales of almost 24 million. If the total market is 2.5 billion, what is the required increase in market share?

What is the key difference between fixed costs and variable costs?

A gift shop owner sells a chair for 275 that was purchased for 125. What is the dollar markup?

A gift shop owner sells a chair for 275 that was purchased for 125. What is the markup percentage on cost?

A gift shop owner sells a chair for 275 that was purchased for 125. What is the markup percentage on selling price?

A consumer purchases a coffee maker for 90. The retailer's markup is 30 percent and the wholesaler's markup is 10 percent, both based on selling price. What price does the manufacturer sell the product to the wholesaler for?

What is the primary reason the appendix provides for why marketing managers need to understand financial analysis?

Based on the appendix, which of the following best defines Market Potential?

What is the primary purpose of the workload method for determining sales force size?

If a product's price is reduced by 10 percent from 168 to 151.20, while its unit variable cost remains 132.72, what happens to the contribution margin?