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MGT 103 STUDY FINAL Questions and Answers (100% Pass)
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MGT 103 STUDY FINAL Questions and Answers (100% Pass)
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1|Page | © copyright 2024/2025 | Grade A+MGT 103 STUDY FINAL Questions
and Answers (100% Pass)
6 Steps in setting price
✓ (1) identify pricing objectives and constraints, (2) estimate demand
and revenue, (3) determine cost, volume, and profit relationships, (4)
select an approimate price level, (5) set list or quoted price, (6) make
special adjustments to list or quoted price
Fundamental revenue concepts
✓ Demand Curves and Revenue = (Change in Quantity Demanded) /
(Change in Price)
Break even point
✓ the number of sales a business must achieve to generate a zero
operating profit, calculated as fixed costs divided by the contribution
margin
Break Even Analysis
✓ total fixed costs / (price of one unit-variable costs of one unit)
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
Revenue
✓ Revenue is the money you collect
✓ for things you sell. Revenue is equal
✓ to Unit Sales x Price of each unit.
✓ A sports franchise has a number of
✓ revenue sources, including: ticket sales,
✓ concessions, licensing and sponsorships.
Total Revenue
✓ Price x Quantity
Average Revenue
✓ Total revenue received divided by the number of units sold. Usually,
price is equal to average revenue.
Marginal Revenue
✓ The change in total revenue that results from the sale of 1 additional
unit of a firm's product; equal to the change in total revenue divided
by the change in the quantity of product sold
Movement Demand Curve
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
✓ When the price of a good increases (decreases), the quantity
demanded of a good decreases (increases), other factors constant
(ceteris paribus) and this results in a...
Shift Demand Curve
✓ The change that takes place in a demand curve corresponding to a
new relationship between quantity demanded of a good and price of
that good. The shift is brought about by a change in the original
conditions.
Price elasticity
✓ Is the demand of an economic measure to how much the quantity of
a good demanded changes when the price changes. Equation:
percentage change in quantity sold divided by the percentage
change in price (% change in quantity(demand) sold/% change in
price)
Demand-Oriented approaches
✓ Skimming, penetration, prestige, pricing lining, odd-even, target,
bundle, yield management
Skimming pricing
Master01 | October, 2024/2025 | Latest update
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