MKT 100 Lecture Notes - Lecture 2: Fixed Cost, Variable Cost
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MKT 100 Full Course Notes
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Only takes into account in variable cost (cost that increases the more that you produce/ sell a product) The calculation- tells you how much you have left over after you take rev and cost of product (what is left tells you what you can use to cover ur fixed cost [rent]) Two calculation: unit margin ($) = price- v. cost, contribution margin (%)= price- v. cost/ price x100. Well we can figure out: how much total rev is being contributed, after accounting for costs. Importance to marketers: helps in the decision regarding product lines, bench marking (other internal initiatives, suppliers.