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MGT 103 Exam 2 Questions and Answers
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MGT 103 Exam 2 Questions and Answers
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MGT 103 Exam 2 Questions andAnswers
Services ii- iiAnswers ii-the iiintangible iiactivities iior iibenefits iithat iian iiorganization
iiprovides iito iisatisfy iiconsumers' iineeds iiin iiexchange iifor iimoney iior iisomething iielse iiof
iivalue
4 iiI's iiof iiServices ii- iiAnswers ii-Four iiunique iielements iito iiservices: iiintangibility,
iiinconsistency, iiinseparability, iiand iiinventory
7 iiP's iiof iiServices iiMarketing ii- iiAnswers ii-Expanded iimarketing iimix iiconcept. iiIncludes
iioriginal ii4 iiP's ii(product, iiprice, iipromotion, iiplace/distribution) iias iiwell iias iipeople,
iiphysical iienvironment, iiand iiprocess.
Revenue iiEquation ii- iiAnswers ii-Revenue ii= iiPrice iix iiQuantity
Profit iiEquation ii- iiAnswers ii-Profit ii= iiTotal iiRevenue ii- iiTotal iiCost
Profit ii= ii(Unit iiPrice iix iiQuantity iiSold) ii- ii(Fixed iiCost ii+ iiVariable iiCost)
Six iisteps iiin iisetting iiPrice ii- iiAnswers ii-Step ii1: iiIdentify iipricing iiobjectives iiand
iiconstraints
Step ii2: iiEstimate iidemand iiand iirevenue
Step ii3: iiDetermine iicost, iivolume, iiand iiprofit iirelationships
Step ii4: iiSelect iian iiapproximate iiprice iilevel
Step ii5: iiSet iilist iior iiquoted iiprice
Step ii6: iiMake iispecial iiadjustments iito iilist iior iiquoted iiprice
Step ii1 iiin iisetting iiprice ii- iiAnswers ii-Identify iipricing iiobjectives iiand iiconstraints
- iiobjectives iilike iiprofit, iimarket iishare, iiand iisurvival
- iiconstraints iilike iidemand, iinewness, iicost, iiand iicompetition
Step ii2 iiin iisetting iiprice ii- iiAnswers ii-Estimate iidemand iiand iirevenue
-demand iiestimation
-sales iirevenue iiestimation
-price iielasticity iiestimation
Step ii3 iiin iisetting iiprice ii- iiAnswers ii-Determine iicost, iivolume, iiand iiprofit iirelationships
- iicost iiestimation
- iimarginal iianalysis, iiin iirelation iito iiprofit
- iiBreak-even iianalysis, iiin iirelation iito iiprofit
, Price iiElasticity iiof iiDemand ii(E) ii- iiAnswers ii-E ii= iiPercentage iiChange iiin
iiQd/Percentage iiChange iiin iiPrice
Break-Even iiPoint ii(BEP) iiquantity ii- iiAnswers ii-FC/(Unit iiPrice-Unit iiVariable iiCost) ii=
iiFC/(P-UVC)
Break-Even iiPoint ii- iiAnswers ii-Where iiTR ii= iiTC
Total iiCost ii- iiAnswers ii-Total iiexpense iiincurred iiby iia iifirm iiin iiproducing iiand
iimarketing iia iiproduct. iiSum iiof iiFC iiand iiVC
Fixed iiCost ii- iiAnswers ii-Sum iiof iiexpenses iia iifirm iithat iiis iistable iiand iidoes iinot
iichange iiw/ iiquantity iiof iia iiproduct
Variable iiCost ii- iiAnswers ii-Sum iiof iithe iiexpenses iithat iivary iidirectly iiwith iithe iiquantity
iiof iia iiproduct iithat iiis iiproduced
Unit iiVariable iiCost ii(UVC) ii- iiAnswers ii-VC/Q
Demand iiCurve ii- iiAnswers ii-A iigraph iirelating iiquantity iisold iiand iiprice, iiwhich iishows
iithe iimaximum iinumber iiof iiunits iithat iiwill iibe iisold iiat iia iigiven iiprice
Price iiElasticity iiof iiDemand ii- iiAnswers ii-The iipercentage iichange iiin iiquantity
iidemanded iirelative iito iia iipercentage iichange iiin iiprice
Break-even iianalysis ii- iiAnswers ii-a iitechnique iithat iianalyzes iithe iirelationship iib/w iitotal
iirevenue iiand iitotal iicost iito iidetermine iiprofitability iiat iivarious iilevels iiof iioutput
Pricing iiobjectives ii- iiAnswers ii-specify iithe iirole iiof iiprice iiin iian iiorganization's
iimarketing iiand iistrategic iiplans
Pricing iiconstraints ii- iiAnswers ii-factors iithat iilimit iithe iirange iiof iiprices iia iifirm iimay iiset
Step ii4 iiin iisetting iiprice ii- iiAnswers ii-Select iian iiapproximate iiprice iilevel
- iiDemand-oriented iiapproaches ii
- iiCost-oriented iiapproaches
- iiProfit-oriented iiapproaches
- iiCompetition-oriented iiapproaches
Step ii5 iiin iisetting iiprice ii- iiAnswers ii-Set iilist iior iiquoted iiprice
-Fixed iiprice iior iidynamic iiprice
-Company, iicustomer, iiand iicompetitive iieffects
-Incremental iicosts iiand iirevenue
Step ii6 iiin iisetting iiprice ii- iiAnswers ii-Make iispecial iiadjustments iito iilist iior iiquoted iiprice
- iiDiscounts
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