MGT 103 Final Exam – Questions, Correct Answers, and Complete Solutions | 2026 Update | UCSD

MGT 103 Final Exam – Questions, Correct Answers,
and Complete Solutions | 2026 Update | UCSD


Profit Equation
Profit = Total Revenue - Total Costs
or
Profit = (Price X Quantity Sold) - Total Costs




Price
the assignment of value, or the amount the consumer must exchange to receive
the offering




Relationship between price and demand
inverse relationship




How would you get an increase in demand without changing price?
Scarcity




Elasticity
a change in price results in great change in quantity demanded

,Inelasticity
a change in price results in little to no change in quantity demanded




Fixed Costs
don't change with number of units produced




Variable Costs
production costs that are tied ti the number of units produced




Breakeven Point
costs of producing a product equal the revenue made from selling the product




Types of Variable Costs
raw materials, credit card fees, sales commissions




Types of Fixed Costs
rent, insurance, salary, loan repayment

, What is more favorable to investors?
A higher proportion of variable costs to fixed costs




Breakeven Point (Quantity) Equation
Fixed Costs/Contribution Unit Margin




Contribution Margin
the difference between the total revenue and total variable costs




Contribution Unit Margin Equation
Price - Variable Costs




How do you calculate a breakeven price?
Add the amount of profit you want to make to the fixed costs of the equation




1. Type of product
2. Type of target market