MKT 100 Metrics Questions with Verified Correct Answers

MKT 100 Metrics Questions with Verified
Correct Answers
Percentage Change

A percentage change is a way to express change in a VARIABLE.

Contribution Margin (%)

(Sale Price - Variable Costs) / Sale Price

Markup (%)

(Sale Price - Variable Costs) / Variable Costs

Contribution margin ($) is ____________ markup ($) value.



(A) larger than

(B) smaller than

(C) equal to

(D) irrelevant to

(C) equal to

Given that a product's sale price is LARGER than its variable costs, the contribution

margin (%) would be _________ the markup (%).



(A) larger than

(B) smaller than

(C) equal to

(D) irrelevant to

, (B) smaller than



Same numerator, markup's denominator is SMALLER than margin's denominator. Thus,

contribution margin (%) must be SMALLER than markup (%).

What's the difference between relative market share and market share?

(1) Relative market share = firm revenue / largest competitor revenue



(2) Market share = firm revenue / total industry revenue

Break-even Units Formulae

Fixed Costs / Unit Contrubition Margin ($)

Break-even Revenue Formulae

[Formulae 1] Fixed Costs / Contribution Margin (%)



[Formulae 2] Break-even Units * Selling Price

Direct labor is a _______ cost.



(A) variable

(B) fixed

(A) variable



Because direct labor costs affect the number of unit produced.

Seasonal workers' salary is a _______ cost.