MGT 103 Final Exam - UCSD (Ehrich)
Study online at https://quizlet.com/_e9atpy
1. Profit Equation Profit = Total Revenue - Total Costs
or
Profit = (Price X Quantity Sold) - Total Costs
2. Price the assignment of value, or the amount
the consumer must exchange to receive the
offering
3. Relationship between price and demand inverse relationship
4. How would you get an increase in demand Scarcity
without changing price?
5. Elasticity a change in price results in great change in
quantity demanded
6. Inelasticity a change in price results in little to no
change in quantity demanded
7. Fixed Costs don't change with number of units pro-
duced
8. Variable Costs production costs that are tied ti the number
of units produced
9. Breakeven Point costs of producing a product equal the rev-
enue made from selling the product
10. Types of Variable Costs raw materials, credit card fees, sales com-
missions
11. Types of Fixed Costs rent, insurance, salary, loan repayment
12. What is more favorable to investors?
, MGT 103 Final Exam - UCSD (Ehrich)
Study online at https://quizlet.com/_e9atpy
A higher proportion of variable costs to
fixed costs
13. Breakeven Point (Quantity) Equation Fixed Costs/Contribution Unit Margin
14. Contribution Margin the difference between the total revenue
and total variable costs
15. Contribution Unit Margin Equation Price - Variable Costs
16. How do you calculate a breakeven price? Add the amount of profit you want to make
to the fixed costs of the equation
17. 1. Type of product What does the importance of price depend
2. Type of target market on?
3. Purchase situation
KNOW YOUR AUDIENCE!
18. Cost Based Pricing calculate price based on company's costs
19. Competitive Based Pricing benchmarking on competitor's prices
20. Demand Based Pricing setting a price based on what consumers
are willing to pay
21. Captive Pricing Add ons in games (battle pass in Fortnite,
gems in episode)
22. Predatory Pricing drive competitors out of the market
23. Dynamic Pricing prices that are changed to match compet-
itive prices, and customer demand
24. Skimming Pricing charge high initial price and bring it down
over time
Study online at https://quizlet.com/_e9atpy
1. Profit Equation Profit = Total Revenue - Total Costs
or
Profit = (Price X Quantity Sold) - Total Costs
2. Price the assignment of value, or the amount
the consumer must exchange to receive the
offering
3. Relationship between price and demand inverse relationship
4. How would you get an increase in demand Scarcity
without changing price?
5. Elasticity a change in price results in great change in
quantity demanded
6. Inelasticity a change in price results in little to no
change in quantity demanded
7. Fixed Costs don't change with number of units pro-
duced
8. Variable Costs production costs that are tied ti the number
of units produced
9. Breakeven Point costs of producing a product equal the rev-
enue made from selling the product
10. Types of Variable Costs raw materials, credit card fees, sales com-
missions
11. Types of Fixed Costs rent, insurance, salary, loan repayment
12. What is more favorable to investors?
, MGT 103 Final Exam - UCSD (Ehrich)
Study online at https://quizlet.com/_e9atpy
A higher proportion of variable costs to
fixed costs
13. Breakeven Point (Quantity) Equation Fixed Costs/Contribution Unit Margin
14. Contribution Margin the difference between the total revenue
and total variable costs
15. Contribution Unit Margin Equation Price - Variable Costs
16. How do you calculate a breakeven price? Add the amount of profit you want to make
to the fixed costs of the equation
17. 1. Type of product What does the importance of price depend
2. Type of target market on?
3. Purchase situation
KNOW YOUR AUDIENCE!
18. Cost Based Pricing calculate price based on company's costs
19. Competitive Based Pricing benchmarking on competitor's prices
20. Demand Based Pricing setting a price based on what consumers
are willing to pay
21. Captive Pricing Add ons in games (battle pass in Fortnite,
gems in episode)
22. Predatory Pricing drive competitors out of the market
23. Dynamic Pricing prices that are changed to match compet-
itive prices, and customer demand
24. Skimming Pricing charge high initial price and bring it down
over time
