MGTA02H3 Lecture : Chapter 7 Study Guide

• School: UTSC
• Department: Management (MGT)
• Course: MGTA02H3
• Professor: Chris Bovaird

Document Summary

Pricing: deciding what the company will receive in exchange for its product. Pricing objectives: goals that producers hope to attain in pricing products for sale. Market share: a company"s percentage of the total market sales for a specific product. Whatever the company"s objectives, managers must measure the potential impact before deciding on final price. Cost-oriented pricing : considers the firm"s desire to make a profit and takes into account the need to cover production costs. Variable costs: costs that change with number of g/s produced or sold. Fixed costs: costs unaffected by the number of g/s produced or sold. Break even analysis: an assessment of how many units must be sold at a given price before the company begins to make a profit. Break- even point: the number of units that must be sold at given price before the company covers all of its variable and fixed costs. Break- even point (in units): total fixed costs / (price variable costs)