Marketing and Accounting Fundamentals
What does CM stand for?
(Unit) Contribution Margin
L in the formula stands for?
List Price
An interest rate that is unchanged for the duration of the transaction is called?
fixed interest rate
How is Unit Variable Cost calculated?
VC = TVC/n
(Total variable cost divided by the number of output)
A quantity that represents the level of output (in units or dollars) at which all costs are paid but no profits are earned, resulting in a net income equal to zero is called?
Break-even
True or False?
If you know the markup on cost percentage and the cost, you can calculate a selling price.
True
Write the formula of Simple Interest.
I = P*r*t
(I = simple interest, P = payment, r = interest rate, t = time)
How to find Single Discount?
N = L × (1 − d)
(Net income = List price * (1 - Discount %)
What will happen to the break-even point if the total fixed costs increase. Would it increase, decrease, or remain the same?
Increase
Will you pay more than, less than, or exactly $10 for a product if you are told that you are paying a net price of $10 when there is a discount of 25%?
Yes, exactly 10$
If you took out a loan for $2,500 at a 5% simple interest rate for six months and you made no payments during that time frame, you owe?
a. More than $2,500
b. Exactly $2,500
c. Less than $2,500
a. More than $2,500.
(When interest is being charged, the future value is always larger than the present value.)
How to find Unit Contribution Margin?
CM = S - VC
(Unit contribution margin = Selling price - Unit variable cost)
Microsoft sells its wireless laser desktop mouse and keyboard for $70. Unit variable costs are $45.60 and fixed costs associated with this product total $277,200.
What is the break-even point in units?
11,361
The Cost of your product is 11, the Expenses are 8, and the Sale Price is 25. Find the Markup.
$14
Present Value = $130,000.00
Simple Interest Rate = 8%
Time = 9 months
Find the Interest Amount
$7800
How to find Unit Break-Even?
n = TFC/CM
(Number of outputs = Total fixed cost / Contribution margin)
What is the unit contribution margin on a product line that has fixed costs of $1,800,000 with a break-even point of 360,000 units?
$5
If the cost of a Bose Wave music system is $27.82 and the list price is $49.99, determine the markup amount.
M$ = $22.17
If you want to earn $1,000 of simple interest at a rate of 7% in a span of five months, how much money must you invest?
$34,285.71
Calculating Net Income using a Total Revenue and Cost Approach?
NI = n(S) − (TFC + n(VC))
(Net income=Total revenue-(Total fixed cost+Total variable cost)