Marketing Appendix 3

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  1. Break-even analysis
    Analysis to determine the unit volume and dollar sales needed to be profitable given a particular price and cost structure.
  2. Contribution margin
    • The unit contribution
    •      Selling price
  3. Cost-plus pricing
    A standard markup to the cost of the product.
  4. Fixed costs(overhead)
    Costs that do not vary with the production or sales level.
  5. Gross margin percentage
    percentage of net sales remaining after cost of goods sold

    • gross margin
    •   net sales
  6. Market return on sales(ROS)
    The per-cent of net sales attributable to the net marketing contribution.

    • Net marketing contribution
    •           Net sales
  7. Marketing return on investment (ROI)
    A measure of the marketing productivity of a marketing investment.

    • Net marketing contribution
    •    Marketing expenses
  8. Markup
    The difference between a company's selling price for a product and its cost to manufacture or purchase it.
  9. Net marketing contribution (NMC)
    A measure of marketing profitability that includes only components of profitability controlled by marketing.
  10. Net profit percentage
    The percentage of each sales dollar going to profit

    • Net profits
    •  Net sales
  11. Operating ratios
    The ratios of selected operating statement items to net sales.
  12. Profit-and-loss statement
    A statement that shows actual revenues less expenses and net profit of an organization, product, or brand during a specific planning period, typically a year.
  13. Return on investment (ROI)
    A cost-based pricing method that determines price based on a specified rate of return on investment.
  14. Total costs
    The sum of the fixed and variable costs for any given level of production.
  15. Variable costs
    Costs that vary directly with the level of production.
Card Set
Marketing Appendix 3
Marketing Exam #2
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