mkg final

A firm that is using marginal analysis to set prices finds that setting a price of $180 per unit would result in the sale of 6 units. The total variable cost of production is equal to $300 and total fixed cost is equal to $150. In this case, the firm's total revenue will be _____.

$1,080

A young working couple earned $35,000 last year, and paid $10,000 in taxes. They spent $13,000 on rent, food, insurance, and other "necessities." What is their discretionary income?

$12,000

Manuel Acala is a marketing analyst, but made only $28,000 last year because he was employed only part of the year. He paid $5,000 in taxes, and spent another $10,000 for food, housing, a car, and other "necessities." Manuel's discretionary income was:

$13,000

Consider the following demand schedule for a product: As the quantity demanded/sold increases from 3 units to 4 units, what is the marginal revenue? Demanded/Sold Price 1. 300 2. 275 3. 250 4. 225 5. 200

$150

Kira Johannson's salary as a sales rep was reduced to $32,000 last year, but she earned an additional $10,000 in sales commissions. Her tax bill was $14,000 and bills covering other necessities such as food, housing, and transportation amounted to $11,000. Kira's discretionary income last year was:

$17,000

A young working couple earned $50,000 last year. Of that, they paid $16,000 in taxes and $15,000 in rent, food, insurance and other necessities. Their discretionary income for the year was:

$19,000

200 units of a good were produced at a total cost of $4,000. Given that total fixed cost was equal to $1,800, the average total cost per unit will be equal to _____.

$20

As the owner of a Bluetooth specialties store, Alicia Fountainbleau has an income of $72,000. She pays $30,000 per year in taxes and another $22,000 per year in grocery bills, house mortgage, and car payment. Last year she spent an additional $4,000 on a two-week vacation at a Club Med in Rio de Janeiro. What was Alicia's discretionary income last year?

$20,000

The quarterly operating statement for a firm gives the following information: Number of pieces manufactured: 100 Number of pieces sold: 100 Total cost of goods sold: $800 Average cost of single piece: $5 Net sales: $1,000 It can be inferred that the firm's gross margin is _____.

$200

Department A in a company had sales of $60,000 in the year 2012. Variables costs of sales was $30,000 and variable selling expenses were $9,000. Fixed administrative expenses were $5000. What is the contribution margin?

$21,000

Misty Hancock is a sales rep for a computer producer. Her salary last year was $30,000, and she earned another $5,000 in sales commissions. She paid $6,000 in taxes, and spent $8,000 on food, housing, a car, and other "necessities." What is Misty's discretionary income?

$21,000

As the owner of a women's clothing store, Caroline Lipscomb has an income of $75,000. She pays $30,000 per year in taxes and another $17,000 per year in grocery bills, house mortgage, and car payment. Last year she went to Italy and spent an additional $4,000. What was Caroline's discretionary income last year?

$28,000

Blue Ridge Weavers wants to set its selling price on an item so that the retail list price will be $50—taking into account the usual markups of 10 percent at wholesale and 30 percent at retail. At what price should Blue Ridge Weavers sell the item?

$31.50

A retailer pays a wholesaler $24.00 for an item and then sells it with a 25 percent markup. The retailer's selling price is:

$32

Bart Thunderheart has an annual income of $75,000 a year. He pays $25,000 in taxes, and spends another $15,000 on his home, car, food, and other "necessities." Last year, he decided to really enjoy his annual vacation, so he spent $5,000 to go skiing in Austria. What was Bart's discretionary income last year?

$35,000

A young working couple earned $55,000 last year. They paid $16,000 in taxes and $20,000 in rent, food, insurance and other necessities. What was their discretionary income for the year?

$39,000

Dell uses the sales-order ratio to measure the performance of its salespeople. If, in the past year, a salesperson made $2 million in sales, called on 5,250 potential business customers (either by phone or in person), and got 3,124 orders, what was this sales rep's order-call ratio (to the nearest whole number amount)?

$640

Alberto Romez earned $100,000 last year as a Mercedes sales rep. He paid $10,000 in taxes, and another $25,000 on food, housing and other necessities. Alberto's discretionary income was _________________.

$65,000

Randy Todd, marketing manager for Sporting Products, Inc. (SPI), is thinking about how changes taking place among retailers in his channel might impact his strategy. SPI sells the products it produces through wholesalers and retailers. For example, SPI sells basketballs to Wholesale Supply for $8.00. Wholesale Supply uses a 20 percent markup and most of its "sport shop" retailer customers, like Robinson's Sporting Goods, use a 33 percent markup to arrive at the price they charge final consumers. However, one fast growing retail chain, Sports Depot, only uses a 20 percent markup for basketballs, even though it pays Wholesale Supply the same price as other retailers. Furthermore, Sports Depot occasionally lowers the price of basketballs and sells them at cost—to draw customers into its stores and stimulate sales of its pricey basketball shoes. Sports Depot is also using other pricing approaches that are different from the sports shops that usually handle SPI products. For example, Sports Depot prices all of its baseball gloves at $20, $40, or $60—with no prices in between. There are three big bins - one for each price point. Todd is also curious about how Sports Depot's new strategy to increase sales of tennis balls will work out. The basic idea is to sell tennis balls in large quantities to nonprofit groups who resell the balls to raise money. For example, a service organization at a local college bought 2,000 tennis balls printed with the college logo. Sports Depot charged $.50 each for the tennis balls-plus a $500 one-time charge for the stamp to print the logo. The service group plans to resell the tennis balls for $2.50 each and contribute the profits to a shelter for the homeless. Todd is not certain if Sports Depot ideas will affect SPI's plans. For example, SPI is considering adding tennis racquets to the lines it produces. This would require a $500,000 addition to its factory as well as the purchase of new equipment that costs $1,000,000. The variable cost to produce a tennis racquet would be $20, but Todd thinks that SPI could sell the racquet at a wholesale price of $40 each. That would allow most retailers to add their normal markup and make a profit. However, if Sports Depot sells the racquet at a lower than normal price other retailers might decide to carry it. What is the service organization's average cost for the printed tennis balls it buys from Sports Depot?

$75

Which of the following is associated with debt financing?

-borrowing money based on a promise to repay the loan, usually within a fixed period of time. -involves interest cost

Marie Callender has developed a new brand of frozen dinners to compete with the well-established brands. It probably should use a marketing mix of:

-intensive distribution -intro price dealing -selective demand advertising -combined push pull

A major difference between functional accounts and natural accounts is that functional accounts

-might be used to compare the costs of serving different customers -- -but natural accounts are not suited to that purpose.

Alia was satisfied with the old television that she had owned for years. But after watching a few shows on her friend's big, flat-screen, HD television, she felt that she should buy a newer model for herself. Which of the following limitations of macro-marketing effectiveness does this illustrate?

-satisfaction depends on and is relative to one's level of aspiration or expectation. -less prosperous consumers begin to expect more

As compared to natural accounts, FUNCTIONAL ACCOUNTS:

-show the purpose for which expenditures are made. -used in factories

Which of the following is a demographic pattern that affects marketing strategy planning?

-slower real income growth in the US -explosion in senior and ethnic submarkets -population growth slow down

Wilson Alvaro graduated with a marketing degree almost a year ago. Like many of his friends, he took a job in sales and really enjoys it. A description of Wilson's job and those of some of his friends are noted below. Wilson Alvaro loves biking and has his dream job. He works for a wholesale company that sells mountain bikes for a manufacturer. He works with a small group of people who call on the buying offices for two large retail chains, Wal-Mart and Toys R Us. The group includes a finance person and a production person, and they all work together to meet the specific needs of these two big accounts; for example, sometimes they recommend a model of bike that will be available from only that retailer's stores. However, Wilson's main job focuses on building relationships and solving customer problems. Only occasionally is he expected to try to persuade the retailers to buy more bikes. Amy Bowden sells life insurance. She calls on new parents and persuades them to buy insurance products. It is difficult for a manager to control Amy's work, but she has incentive to work hard because her job security and income depend on getting sales. She is a confident self-starter, so she likes it that way. Ben Peterson works for a fashionable men's clothing store. He enjoys spending time with customers who come in, learning about their fashion needs, and helping them pick clothes that really work for them. While the store manager can easily observe and direct Ben's activities, the manager wants Ben to have the incentive to increase customer purchases and satisfaction. Emily Winters handles inside sales for a major industrial distributor. She deals with a regular set of established customers, most of whom know what they want. Emily talks to them on the phone and answers questions about products, delivery time, and pricing. She sometimes works with outside sales reps who visit customers and help introduce new products. Emily is the first person her customers call when there's a problem with a purchase, so she spends a lot of time dealing with customer problems. As an inside salesperson, Emily's work is easily supervised by a sales manager- and she has little influence on how much her customers buy. Melissa Tran works for a company that sells paper products (like napkins, paper towels, and paper plates) primarily through small independent grocers. Most of the grocers are regular customers, but sometimes she makes cold calls to new grocery stores. Melissa's job is to develop goodwill and try to increase sales. For example, she often sets up special promotional displays in stores. Her compensation plan gives her income security, but she also can receive a bonus for sales growth in her territory. Charlie Riggs is a telemarketer for an Internet service provider. He calls people on a list provided by his firm and tries to sign them up for Internet service. Charlie relies heavily on a presentation he learned during his training. Charlie is very good at what he does and loves that the more success he has the more he earns. Melissa Tran's company wants to have enough salespeople to serve 1,000 accounts. An effective salesperson can call on each account 12 times a year and should average about two hours per sales call. Each salesperson works 40 hours a week and takes off two weeks for vacation each year. Salespeople spend half their time on travel and administration. How many salespeople does Melissa's company need?

24

Premier Bank considers population an effective measure of sales potential for its safe deposit boxes. It has broken down the population of the U.S. by region and assigned 30 percent of the total population to the Northeastern region. If Premier has a planned sales goal of $2.5 million nationwide, and actual sales in the Northeastern region last year were $650,000, what was the Northeastern region's performance index (to the nearest whole number percent)?

87 percent

Capitol Enterprises uses the cost-sales ratio to measure the performance of its salespeople. If, in the past year, a salesperson made $800,000 in sales, had travel expenses of $23,000, and received a base salary of $40,000 plus $6,000 in commissions, what was this sales rep's cost-sales ratio (to the nearest whole number percent)?

9 percent

Which of the following statements is FALSE in regard to borrowing money?

Borrowing $ is usually less expensive than reinvesting cash generated from operations

The challenges of matching supply and demand often occur when a marketing plan calls for:

Expansion into many market areas all at once.

major purpose of marketing cost analysis is to

Get marketing managers and accountants to work together to allocate costs to products and customers

Excess capacity may exist because there is _____ demand for what a firm can produce or there's _____ competition.

Little demand, too much competition

At Dell's Web site, a student can order a laptop computer with the exact memory capability and software that she wants, and have it shipped to her dorm room within 48 hours. This is an example of:

Mass customization

In serving individuals within target segments, _____ tries to get a competitive advantage by finding a low cost way to give each customer more/better choices.

Mass customization

Starbucks ran a full-page ad in THE WALL STREET JOURNAL proclaiming that its baristas can make more than 87,000 possible combinations of an espresso coffee drink. This is an example of:

Mass customization

At the Comfort Inn Web site, a customer can create an account with his preferences for a smoking or non-smoking room, the type of pillows he likes, early or late check-in and check-out, and his room location. The hotel keeps track of this information and uses it whenever this customer reserves a room in the future. This is an example of:

Mass customization-tailoring the principles of mass production to meet the unique needs of individual customers.

Any increase in profit contribution that a strategy generates, without increasing capital invested, increases the firms:

ROI

The problems of matching supply and demand occur less frequently when a marketing plan calls for:

Regional rollout

A study revealed that when consumers are dissatisfied with a product or an individual business

a majority of their complaints are never reported

Which of the following is an unethical behavior on the part of a consumer?

abusing return policies changing price tags shoplifting abuse to sales people

A S.W.O.T. analysis can help a marketing manager:

all of the above

Working capital may be used to pay for:

all of the above

a marketing plan will

all of these are correct

The reason that MICRO-marketing costs too much in many firms is that:

any or all of the above

A marketing manager should

be concerned that many of the complaints that are reported are never resolved

The best way to improve the operation of our MACRO-marketing system—given the current objectives of our society—is:

better marketing strategy planning and implementation

Which of the following area does not relate to "Place" in the Four Ps?

branding

If a firm has excess production capacity, it

can be a safety net if demand picks up

Which of the following statements is true regarding excess capacity?

can be a safety net if demand suddenly picks up

In determining cash flow, managers often look at a company's

cash flow statement

_____ looks at when money will be available

cash flow statement

According to your text, critics of advertising

claim that firms use clever ads to persuade consumers to buy whatever the firm wants to sell

Which of the following statements about mass customization is true?

cost of inventory and transportation often determine the extent

As a product moves through its product life cycle stages:

customer needs and attitudes may change

Monopolistic competition—which is typical in our market-directed economy—is caused by:

customer preferences

Which of the following is NOT a trend affecting marketing strategy planning in the area of International Marketing?

decreasing role of airfeight decreasing income and population

Which of the following is NOT a trend affecting marketing strategy planning in the area of Mass Selling?

decreasing role of publicity

Which of the following is NOT a trend affecting marketing strategy planning in the Pricing area?

decreasing use of value pricing

Consumer satisfaction:

depends on and is relative to the level of aspiration or expectation.

To meet the new competition, prices of the old products usually

drop

Which of the following expenses involves the working capital a company needs for operation?

employee salaries advertising market research inventory storing

Which of the following is NOT a trend affecting marketing strategy planning in the area of Sales Promotion?

fewer customer loyalty programs

A virtual corporation:

firm is primarily a coordinator w/ a good mkg concept

Ideally, the ingredients of a good marketing mix should:

flow logically from all of the relevant dimensions of a target market

Which of the following is NOT a trend affecting marketing strategy planning in the area of Demographic Patterns?

higher real income growth in US

Which of the following is an example of a FUNCTIONAL cost account?

include milling, grinding, maintenance, and so on.

Provided that a product satisfies customer needs, advertising can:

increase demands for the product

Which of the following statements is true?

indirect distribution usually requires less investment capital than direct approaches

MACRO-marketing:

is probably best evaluated by how individual consumer citizens vote

According to the text, one of the main reasons that IKEA has been able to grow rapidly without greater capital investments is that

it carefully manages cost

In a market-directed system:

it is up to each customer to decide how effectively individual firms satisfy his or her needs. Usually, customers will buy more of the products that satisfy them—and they will do it repeatedly.

Satisfaction with a firm's marketing efforts can be roughly measured by

it's profit

As consumers shift their support to firms that do meet their needs,

laggard businesses are forced to either improve or get out of the way

Which of the following is NOT a trend affecting marketing strategy planning in the area of Channels and Logistics?

less attention to distribution service

Which of the following is NOT a trend affecting marketing planning strategy in the area of Business and Organizational Customers?

less e-commerce and supply chain management

Given the American economy's basic objective of meeting consumers' needs as THEY—the consumers—see them, it is sensible to evaluate our MACRO-marketing system in terms of:

level of satisfaction

Marketing inefficiencies are due to all of the following reasons EXCEPT

listening too closely to the "value of the customer"

A market-directed economy

makes efficient use of resources

Which of the following does NOT support the idea that "MICRO-marketing often DOES cost too much"?

many firms try to maximize profits

With the mass customization approach, a firm

may still focus on certain market segments within a broad product market

According to the text:

micro-marketing often costs too much

As macro-marketing systems improve worldwide:

more consumers have income to buy products from wherever those products come

When evaluating macro-marketing:

necessarily subjective

Advertising

none of the above

Keith McPherson earned $20,000 last year as a carpenter. He paid $6,000 for food, rent, medical expenses and other "necessities." There was little construction work in February, so he took a trip to the Caribbean and spent $4,000. What was Keith's discretionary income last year?

not enough info

In marketing cost analysis, all of the following are considered natural accounts EXCEPT

packaging and shipping

A marketing plan that included sections on transportation requirements, inventory product-handling requirements, and facility requirements would include those sections under the area of ___________.

place

A market-directed economic system implies that:

political freedom and economic freedom go hand in hand and that citizens in free society have a right to live as they choose.

In the development of a marketing plan, blending the marketing mix would not generally involve

predicting future behavior

Flexibility, geographic terms, and allowances are all related to

price

Which of the 4Ps in the marketing mix is most directly related to the instructions that come with a new high-definition television set?

product

An automobile plant is capable of manufacturing 40 sport utility vehicles in 24 hours. This details the manufacturing plant's_____

production capacity

Many universities have begun conducting a variety of academic and athletic summer camp programs for elementary school, middle school, and high school students. These programs utilize the space in classrooms, dormitories, and other facilities that would otherwise be unused during the summer months. In addition, the programs generate revenue for the universities and promote them to prospective students. These new opportunities are possible because during the summer, the universities have excess:

production capacity

A widespread shift to mass customization has not occurred because firms found that

production costs were still high, even if the internet offered a low cost way to get a lot of order.

Which of the following would NOT be paid for using working capital?

purchase of new facilities new production equipment

Regarding marketing cost analysis, which of the following statements is TRUE?

reclassify all of the dollar cost entries

What is the first step in marketing cost analysis?

reclassify all the dollar cost entries in the natural accounts into functional cost accounts.

Which of the following is the reason why an internally financed company selling its products at a lower price can earn more profit than a competitor who is operating on borrowed money?

reinvesting cash from operations is less expensive than borrowing money because no interest expense

Indirect distribution usually

requires less investment capital than direct approaches using telecommunications to move service operations

In marketing cost analysis, all of the following are considered functional accounts EXCEPT:

salary, rent, power (natural)

The basic objective of the U.S. market-directed economic system is to:

satisfy customer needs as the consumer themselves see them

Regarding our MACRO-marketing system:

satisfying consumer needs and wants is a dynamic on-going process

Pioneer has developed a really new consumer electronics item—a heterogeneous shopping product with unique patented features. It probably should use a marketing mix of:

selective distribution skimming pricing pioneering advertising "push" policy

Which of the following is NOT a trend affecting marketing strategy planning in the Product area?

slower new product development

Regarding our MACRO-marketing system, the text suggests that:

some changes may be necessary, but consumer citizens should vote on these changes

____ refers to a share in the ownership of a company.

stock

A S.W.O.T. analysis

strengths weaknesses opportunities threats

A firm generates a monthly profit of $160,000 dollars. If the 80/20 rule applies to this firm's products, which of the following statement is true?

the firm generates $128,000 in profit from 20% of its products

Given the U.S. economy's basic objective, the best measure of the effectiveness of the U.S. macro-marketing system is:

the level of customer satisfaction

TopKnotch Mfg. Co. has a production cost of $280. It sells its product to a wholesaler for $400. The wholesaler then sells the item to retailers for $500 and the retailers sell the item for $1,000. Which of the following is true about this "markup chain?"

the manufacturer is taking a markup of 30 percent

Marketing cost analysis starts with the assumption that:

understanding profitability depends on being able to identify the specific costs of different services.

Cross-functional challenges are greatest

when developing new strategies; more significant change.

In which of the following situations is the cross-functional challenge likely to be the greatest?

when the most change occurs

A firm needs _____ to pay for short-term expenses such as employee salaries, advertising, marketing research, inventory storing costs, and what the firm owes suppliers.

working capital