Marketing midterm 3
1. One of the key characteristics of brainstorming False
sessions is that bad ideas should be immediately
rejected so the group can focus its attention on good
ideas.
, Marketing midterm 3
1) Raymond estimates the fixed costs associated with A)
opening a new bank branch are $500,000. He estimates Fixed = 500,000
the branch will attract 1,000 new customers who will cost variable cost / customer = 50
$50/year to service each of their accounts. He also number of customers = 1000
expects to generate $100,000 in fees annually from
these accounts. Variable cost = 1000 x 50 = 50,000
Total cost = fixed + variable = 500,000 + 50,000 = $550,000
1.1) What will be the total cost of opening the new Answer = $550,000
branch and remaining open for one year? B)
Fixed cost = 8,000
1.2) If the fixed costs of manufacturing a new cell phone Price = 60
are $8,000, the sales price is $60, and variable cost per Variable = 20
unit is $20, the break-even point is: Contribution margin per unit = 60-20 = 40
Break even units = fixed / contribution margin
1.3) The fixed cost of manufacturing a new cell phone is = 200 units
$8,000. The sales price is $60 and variable cost per unit Answer 200 units
is $20. If the cell phone has sold 400 units, the profit will
be: C)
Revenue = 400 units x $60 (cost) = 24,000
Variable cost = 400 units x $20 = 8,000
Fixed costs = 8,000
Profit = revenue - variable cost - fixed cost
, Marketing midterm 3
Profit = 24000 - 8000 - 8000 = 8000 Profit
Answer $8000
1. The process by which the use of a new product or C. diffusion of innovation.
service spreads throughout a market group is referred
to as
A. new product introduction.
B. lead user dispersion.
C. diffusion of innovation.
D. the product life cycle.
E. product development diffusion.
, Marketing midterm 3
2. For new product marketers, early adopters are C. opinion leaders.
important because they tend to be
A. few in number.
B the first to adopt a new product.
C. opinion leaders.
D. fond of prototypes.
E. alpha testing enthusiasts.
2. On the diffusion of innovation curve, the first group of False
buyers who want to be the first on the block to have the
new product are known as early adopters.
1. One of the key characteristics of brainstorming False
sessions is that bad ideas should be immediately
rejected so the group can focus its attention on good
ideas.
, Marketing midterm 3
1) Raymond estimates the fixed costs associated with A)
opening a new bank branch are $500,000. He estimates Fixed = 500,000
the branch will attract 1,000 new customers who will cost variable cost / customer = 50
$50/year to service each of their accounts. He also number of customers = 1000
expects to generate $100,000 in fees annually from
these accounts. Variable cost = 1000 x 50 = 50,000
Total cost = fixed + variable = 500,000 + 50,000 = $550,000
1.1) What will be the total cost of opening the new Answer = $550,000
branch and remaining open for one year? B)
Fixed cost = 8,000
1.2) If the fixed costs of manufacturing a new cell phone Price = 60
are $8,000, the sales price is $60, and variable cost per Variable = 20
unit is $20, the break-even point is: Contribution margin per unit = 60-20 = 40
Break even units = fixed / contribution margin
1.3) The fixed cost of manufacturing a new cell phone is = 200 units
$8,000. The sales price is $60 and variable cost per unit Answer 200 units
is $20. If the cell phone has sold 400 units, the profit will
be: C)
Revenue = 400 units x $60 (cost) = 24,000
Variable cost = 400 units x $20 = 8,000
Fixed costs = 8,000
Profit = revenue - variable cost - fixed cost
, Marketing midterm 3
Profit = 24000 - 8000 - 8000 = 8000 Profit
Answer $8000
1. The process by which the use of a new product or C. diffusion of innovation.
service spreads throughout a market group is referred
to as
A. new product introduction.
B. lead user dispersion.
C. diffusion of innovation.
D. the product life cycle.
E. product development diffusion.
, Marketing midterm 3
2. For new product marketers, early adopters are C. opinion leaders.
important because they tend to be
A. few in number.
B the first to adopt a new product.
C. opinion leaders.
D. fond of prototypes.
E. alpha testing enthusiasts.
2. On the diffusion of innovation curve, the first group of False
buyers who want to be the first on the block to have the
new product are known as early adopters.
