MKT 300 Lecture Notes - Lecture 2: Mid-Size Car, Nopat, Caffeine
Document Summary
Units * contribution margin ($) = fixed costs ($) Break even volume # = fixed costs ($)/ contribution margin unit. Gross profit = total revenue cost of goods sold. Gross profit margin = gross profit /total revenue. Net profit (aka net income) = total revnue total expenses. Roic (return on investment capital) compare to the industry. Allows us to compare and evaluate two projects. Metric used to measure the overall effectiveness of a marketing campaign by considering the incremental contribution over the cost of the campaign. If you issue a 2 for 1 coupon, how much would it make a difference in sales if you had not issue a coupon. (revenue attributable to marketing x contribution margin percent) marketing costs. Step 1: estimate size of target market in annual units or dollars sold. Step 2: determine how much revenue or # of units are required to either break-even, or achieve desired.
