MKT 100 Lecture Notes - Lecture 5: Wolfville, Contribution Margin, Fixed Cost

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Mary Foster

Document Summary

Contribution margin: what is left over after you covered your variable costs. Variable costs (a) + contribution margin (b) = selling price or revenue (c) rent insurance ( / 12 months) Contribution margin = selling price variable costs. Contribution margin % = cm ($) / revenue x 100. Total fixed costs per year = ,000 total fixed one time costs (capital investments) = . All things being equal, the data should be indentical. Different demographics, location, menu, population density, number of competitors, quality of the food. You are not testing a hypothesis, just describing whats going on. Done over time, and the same opinion persists. By the time the decision, the decision is made in the hands of the buyer and consumer. Difficult for people to share their opinions if it"s monopolistic. Marketing: creating, communicating and delivering offerings that have value for customers. Consumption: finding and consuming offerings that have value.