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MGT 103 EXAM 2 Questions and Answers (100% Pass)
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MGT 103 EXAM 2 Questions and Answers (100% Pass)
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1|Page | © copyright 2024/2025 | Grade A+MGT 103 Exam 2 Questions and
Answers (100% Pass)
Services
✓ the intangible activities or benefits that an organization provides to
satisfy consumers' needs in exchange for money or something else of
value
4 I's of Services
✓ Four unique elements to services: intangibility, inconsistency,
inseparability, and inventory
7 P's of Services Marketing
✓ Expanded marketing mix concept. Includes original 4 P's (product,
price, promotion, place/distribution) as well as people, physical
environment, and process.
Revenue Equation
✓ Revenue = Price x Quantity
Profit Equation
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
✓ Profit = Total Revenue - Total Cost
✓ Profit = (Unit Price x Quantity Sold) - (Fixed Cost + Variable Cost)
Six steps in setting Price
✓ Step 1: Identify pricing objectives and constraints
✓ Step 2: Estimate demand and revenue
✓ Step 3: Determine cost, volume, and profit relationships
✓ Step 4: Select an approximate price level
✓ Step 5: Set list or quoted price
✓ Step 6: Make special adjustments to list or quoted price
Step 1 in setting price
✓ Identify pricing objectives and constraints
✓ - objectives like profit, market share, and survival
✓ - constraints like demand, newness, cost, and competition
Step 2 in setting price
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
✓ Estimate demand and revenue
✓ -demand estimation
✓ -sales revenue estimation
✓ -price elasticity estimation
Step 3 in setting price
✓ Determine cost, volume, and profit relationships
✓ - cost estimation
✓ - marginal analysis, in relation to profit
✓ - Break-even analysis, in relation to profit
Price Elasticity of Demand (E)
✓ E = Percentage Change in Qd/Percentage Change in Price
Break-Even Point (BEP) quantity
✓ FC/(Unit Price-Unit Variable Cost) = FC/(P-UVC)
Break-Even Point
✓ Where TR = TC
Master01 | October, 2024/2025 | Latest update
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