MKT 300 Study Guide - Quiz Guide: Profit Margin, Groupon, Customer Retention

• School: Ryerson University
• Department: Marketing
• Course: MKT 300
• Professor: Hamed Mehrabi

Document Summary

Fashion pro currently manufactures their novelty t-shirts for a contribution margin of 70%. With a sales revenue of ,000, their fixed costs are 42% of their sales. They have signed with a new company that can produce their shirts allowing them to increase their contribution margin to 75%. You are running a business that sells office supplies. Your monthly lease on the space is . Over the course of this week, you paid 4 part- time employees per hour, and they each worked 20 hours. You also pay a full-time manager, who is on salary, ,600 per annum. As it was back-to-school time, you ran a special flyer that cost you to print and deliver. Your electricity bill averages out to . 33 per month, and you also employ the services of an accountant four times a year to manage books and do taxes, at a cost of per year. You are running a company that produces backpacks.