Total Cost is a function of Variable Cost plus Fixed cost. Knowing your Total Costs can...
Total Cost is a function of Variable Cost plus Fixed cost. Knowing your Total Costs can help you make some critical decisions about the pricing and possibly distribution partner strategy you might undertake.
From the following options pick the top 2 most important reasons why knowing your Total Cost helps with your marketing decisions.
Select one or more:
a. Knowing your total costs allows you to establish your minimum selling price.
b. Knowing your total costs will help you to determine your marketing budget.
c. Knowing your total costs can help you understand your breakeven costs.
d. Knowing your fixed costs can help you work with distribution and retail partners.
e. Knowing your variable costs allows you to look for savings in labour costs.
Homework Answers
Total cost is the sum of fixed and variable cost. Break even cost can be calculated with the help of fixed and variable or total costs. When the company has a fair idea of variable cost, it can look for ways in which labor cost can be reduced more. This way, the company can aim at making more profits.
Answer: Option c,e
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Total Cost is a function of Variable Cost plus Fixed cost.
Knowing your Total Costs can...
Total fixed costs = $1,000,000 Unit Price = $5,515 Unit Variable Cost = $2,170 Find the...
Total fixed costs = $1,000,000 Unit Price = $5,515 Unit Variable Cost = $2,170 Find the breakeven volume. What happens to the breakeven volume if the unit price falls to $5,000 and unit variable cost rises to $2,500? Discuss your findings.
The break-even point is where: total sales total variable costs. total sales total variable costs plus...
The break-even point is where: total sales total variable costs. total sales total variable costs plus profit. total sales total costs. total sales fixed costs plus profit. Which of these is not a fixed cost? ODepreciation on motor vehicles OManagement salaries ODirect labour O Lease payments
Knowing the cost of acquiring a new customer can help you make some strategic decisions about...
Knowing the cost of acquiring a new customer can help you make some strategic decisions about your marketing campaign. Which additional factors are needed to decide if the campaign was successful/profitable? (Pick three (3)). Select one or more: a. Industry campaign benchmarks to see if our competitor campaigns are successful. b. Lifetime Value of the customer c. Business objectives d. Average customer purchase price/value e. New customer target segment acquisition costs f. Campaign success or failure rates g. Previous campaign...
Question 3: Pricing decisions Total fixed costs are $15,000. Unit variable cost is $10. At current...
Question 3: Pricing decisions Total fixed costs are $15,000. Unit variable cost is $10. At current selling price of $25, you sell 1,000 units per month. If you reduce the price by 10%, sale volume will increase to 1,300 units. Compute profit at the original price: Compute profit at the reduced price: Should you reduce the price? YES, because profit will increase by $1,250 YES, because revenue will increase by $4,250 NO, because a lower price always reduces profit
Question 3: Pricing decisions Total fixed costs are $25,000. Unit variable cost is $30. At current...
Question 3: Pricing decisions Total fixed costs are $25,000. Unit variable cost is $30. At current selling price of $75, you sell 1,000 units per month. If you reduce the price by 10%, sale volume will increase to 1,300 units. Compute profit at the original price: Compute profit at the reduced price: Should you reduce the price? O NO, because a lower price always reduces profit O YES, because revenue will increase by $12,750 O YES, because profit will increase...
Understanding the nature of fixed and variable costs is extremely important to managers. This knowledge is...
Understanding the nature of fixed and variable costs is extremely important to managers. This knowledge is used in planning, making strategic and tactical decisions, evaluating performance, and controlling operations. Each group member is responsible for one of the following businesses. Retail store that sells music CDs Dental clinic Fast-food restaurant Auto repair shop Required In each business decide what single measure best reflects the overall level of activity in the business and give examples of costs that are fixed and...
Understanding the nature of fixed and variable costs is extremely important to managers. This knowledge is used in plan...
Understanding the nature of fixed and variable costs is extremely important to managers. This knowledge is used in planning, making strategic and tactical decisions, evaluating performance, and controlling operations. Each group member is responsible for one of the following businesses. Retail store that sells music CDs Dental clinic Fast-food restaurant Auto repair shop Required In each business decide what single measure best reflects the overall level of activity in the business and give examples of costs that are fixed and...
3. Total fixed costs are $1,000, the price is $30, unit variable cost is $20. Breakeven...
3. Total fixed costs are $1,000, the price is $30, unit variable cost is $20. Breakeven revenue in dollars A. $100 B. $1,000 C. $1,500 D. $3,000 E. not enough information need data on total revenue and total costs to determine CMR
Production-Costs. Quantity Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost...
Production-Costs. Quantity Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost $25 FE FF LL MM GG $13.25 HH UU $16 BB 522 CC vy DD KK $22.75 ww Solve for the missing entries in the above table. Round all average cost calculations to the nearest cent
If a product sold for $104, had variable cost per unit of $44, and total fixed...
If a product sold for $104, had variable cost per unit of $44, and total fixed costs of $477, the breakeven would be $__.__. Calculate your answer to 2 decimal places.
The break-even point is where: total sales total variable costs. total sales total variable costs plus profit. total sales total costs. total sales fixed costs plus profit. Which of these is not a fixed cost? ODepreciation on motor vehicles OManagement salaries ODirect labour O Lease payments
Question 3: Pricing decisions Total fixed costs are $15,000. Unit variable cost is $10. At current selling price of $25, you sell 1,000 units per month. If you reduce the price by 10%, sale volume will increase to 1,300 units. Compute profit at the original price: Compute profit at the reduced price: Should you reduce the price? YES, because profit will increase by $1,250 YES, because revenue will increase by $4,250 NO, because a lower price always reduces profit
Question 3: Pricing decisions Total fixed costs are $25,000. Unit variable cost is $30. At current selling price of $75, you sell 1,000 units per month. If you reduce the price by 10%, sale volume will increase to 1,300 units. Compute profit at the original price: Compute profit at the reduced price: Should you reduce the price? O NO, because a lower price always reduces profit O YES, because revenue will increase by $12,750 O YES, because profit will increase...
3. Total fixed costs are $1,000, the price is $30, unit variable cost is $20. Breakeven revenue in dollars A. $100 B. $1,000 C. $1,500 D. $3,000 E. not enough information need data on total revenue and total costs to determine CMR
Production-Costs. Quantity Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost $25 FE FF LL MM GG $13.25 HH UU $16 BB 522 CC vy DD KK $22.75 ww Solve for the missing entries in the above table. Round all average cost calculations to the nearest cent
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