Question 1

Calculate the net marketing contribution variance,if the actual net marketing contribution and net marketing contribution estimated in the plan are $450,000 and $900,000,respectively.The actual percentage of market share is 25%.

Accepted Answer

Net marketing contribution variance = Actual net marketing contribution - Estimated net marketing contribution
= $450,000 - $900,000 = -$450,000

Since the variance is negative, it means that the actual net marketing contribution is lower than the estimated net marketing contribution. This could be due to various reasons such as lower sales volume, higher costs, lower selling price, etc. Therefore, option C is the correct answer.

Question 2

The fundamental marketing profitability metric for planning purposes is the ________ equation.

Accepted Answer

The net marketing contribution equation takes into account the revenue generated by a product, minus the variable costs associated with producing and marketing that product, to determine the actual profitability of a marketing initiative. This allows companies to make informed decisions about which products or initiatives to invest in based on their potential profitability.

Question 3

Calculate the marketing expense variance,if the actual marketing expense and marketing expenses estimated in the plan are $98,000 and $80,000,respectively.The actual percentage of sales is 15%.

Accepted Answer

The marketing expense variance is calculated as the difference between the actual marketing expense and the planned marketing expense: $98,000 - $80,000 = $18,000.

Question 4

The actual price per unit and price per unit estimated in the plan are $15 and $20,respectively.The actual volume of units produced is 25,000 units.Calculate the price variance.

Accepted Answer

Price variance = (Actual price - Budgeted price) x Actual quantity
= ($15 - $20) x 25,000
= -$125,000
The negative sign indicates that the actual price was lower than the budgeted price, resulting in a favorable variance.

Question 5

Variance in volume reflects any difference in actual versus planned market demand plus any difference in actual versus planned ________.

Accepted Answer

Variance in volume reflects differences in actual versus planned market demand and market share, as both affect the total volume sold.

Question 6

Calculate the total market demand if a business sells 48,000 units,which represents a market share of 32%.

Accepted Answer

The answer of Calculate the total market demand if a...

Question 7

The actual volume and volume estimated in a business plan are 60,000 units and 55,000 units,respectively.If the volume variance of the business works out to $30,000,calculate the margin per unit estimated in the plan.

Accepted Answer

The volume variance can be calculated as the difference between the actual volume and the estimated volume, multiplied by the margin per unit. Here, the volume variance is $30,000, and the difference in volume is 5,000 units (60,000 actual - 55,000 estimated). To find the margin per unit, divide the volume variance by the difference in volume: $30,000 / 5,000 units = $6 per unit.

Question 8

Calculate the price per unit if the variable cost per customer is $6 and the margin per unit is $24.

Accepted Answer

The price per unit is calculated by adding the variable cost per unit to the margin per unit. Therefore, $6 (variable cost) + $24 (margin) = $30.

Question 9

MINI-CASE
AVB Inc.is a business that produces automobile parts.The plan and the actual performance of the business are shown in the table.
 
-Mini-Case Question.Calculate the volume variance of the business.

Accepted Answer

The answer of MINI-CASE
AVB Inc.is a business that produces automobile...

Question 10

Explain the importance of market metrics,and name and describe the two types of market metrics,providing examples of specific metrics for each.

Accepted Answer

The answer of Explain the importance of market metrics,and name...

Question 11

Discuss the three major forces that contribute to success or failure in implementing a marketing plan.

Accepted Answer

The answer of Discuss the three major forces that contribute...

Question 12

If a business produces 800,000 units and the market demand for the product is 4 million units,what is its percentage of market share?

Accepted Answer

The business's market share is calculated by dividing the number of units it produces by the total market demand and then multiplying by 100 to get a percentage. So, $ \frac{800,000}{4,000,000} \times 100 = 20\%$.

Question 13

If a business produces 400,000 units and the market demand for the product is 2 million units,what is its percentage of market share?

Accepted Answer

The market share is calculated by dividing the company's total sales or production by the total market demand and then multiplying by 100 to get a percentage. In this case, it's (400,000 / 2,000,000) * 100 = 20%.

Question 14

Calculate the total volume of units produced if there is a market demand of 50,000 units at a market share of 10%.

Accepted Answer

The answer of Calculate the total volume of units produced...

Question 15

MINI-CASE
AVB Inc.is a business that produces automobile parts.The plan and the actual performance of the business are shown in the table.
 
-Mini-Case Question.Calculate the net marketing contribution variance of the business.

Accepted Answer

The net marketing contribution variance is calculated as the difference between the actual net marketing contribution and the budgeted net marketing contribution. The positive $20,000 indicates that the actual contribution exceeded the budgeted amount by $20,000.

Question 16

MINI-CASE
AVB Inc.is a business that produces automobile parts.The plan and the actual performance of the business are shown in the table.
 
-Mini-Case Question.Calculate the margin variance of the business.

Accepted Answer

Margin variance can be calculated as (Plan Margin - Actual Margin). Here, Plan Margin = $300,000 and Actual Margin = $220,000. Therefore, Margin Variance = ($300,000 - $220,000) = -$80,000. This indicates that the actual margin is $80,000 less than the planned margin. Hence, the correct answer is D) -$80,000.

Question 17

If the price per unit is $34 and the variable cost per customer is $17,calculate the margin per unit.

Accepted Answer

The margin per unit is calculated by subtracting the variable cost per unit from the price per unit. Therefore, $34 - $17 = $17.

Question 18

A business has a market demand of 300,000 units at a market share of 20%.The price per unit and variable cost per customer are $25 and $10,respectively.If the net marketing contribution of the business is $450,000,calculate the total marketing and sales expenses incurred by the business.

Accepted Answer

The answer of A business has a market demand of...

Question 19

The actual variable cost per customer and variable cost per customer estimated in the plan are $3 and $8,respectively.The actual volume and the volume estimated in the plan are 30,000 units and 20,000 units,respectively.Calculate the cost variance.

Accepted Answer

The answer of The actual variable cost per customer and...

Question 20

The actual margin per unit and margin per unit estimated in the plan are $6 and $8,respectively.The actual volume and the volume estimated in the plan are 5,000 units and 10,000 units,respectively.What is the margin variance of the business?

Accepted Answer

The margin variance is calculated as (Actual Margin - Planned Margin) x Actual Volume. Here, it is ($6 - $8) x 5,000 = -$10,000.

Quiz 15: Marketing Metrics,performance,and Strategy Implementation