Question 1

Javier's Pizza Point has a margin per unit of $2.00 for a typical pizza, total fixed expenses of $10,000, and average variable costs of $3.00 per pizza. How many pizzas must Javier sell to break even?
A) 2,000
B) 3,334
C) 5,000
D) 20,000
E) 30,000

Accepted Answer

To break even, total revenue must equal total costs (fixed + variable). The contribution margin per pizza is $2.00. To cover $10,000 in fixed costs, Javier must sell 5,000 pizzas ($10,000 / $2.00 = 5,000).

Question 2

Calculate a business's return on sales when it makes a net profit of $500,000 from sales of $3 million.
A) 60%
B) 16.7%
C) 30.5%
D) 50.5%
E) 24.8%

Accepted Answer

Return on Sales (ROS) is calculated by dividing the net profit by total sales and then multiplying by 100 to get a percentage. So, $500,000 / $3,000,000 * 100 = 16.7%.

Question 3

MVB Inc.obtains a return of 9.8% from assets worth $248.5 million. Calculate its net profit.
A) $105.9 million
B) $36.8 million
C) $24.3 million
D) $76.2 million
E) $60.4 million

Accepted Answer

The net profit is calculated by multiplying the return rate by the asset value: 9.8% of $248.5 million equals $24.3 million.

Question 4

Milton-Normand Inc. obtains a return of 13.5% from total invested capital of $790.6 million. Calculate the net profit it generates.
A) $325.3 million
B) $159 million
C) $84.7 million
D) $233.5 million
E) $106.7 million

Accepted Answer

The net profit is calculated by multiplying the return rate by the total invested capital: 13.5% of $790.6 million equals $106.7 million.

Question 5

Calculate the total marketing and sales expenses incurred by a business if it produces 30,000 units at $15 per unit and its net marketing contribution is $225,000.
A) $300,000
B) $150,000
C) $625,000
D) $225,000
E) $450,000

Accepted Answer

The answer of Calculate the total marketing and sales expenses...

Question 6

Calculate the total volume of units sold by a business if there is a market demand of 550,000 units and the business has a market share of 25%.
A) 292,560
B) 440,650
C) 137,500
D) 325,000
E) 110,190

Accepted Answer

The total volume of units sold by the business is calculated by taking 25% of the market demand of 550,000 units. This is done by multiplying 550,000 by 0.25, which equals 137,500 units.

Question 7

Calculate the total market demand if a business sells 48,000 units, which represents a market share of 32%.
A) 224,500
B) 265,000
C) 196,000
D) 150,000
E) 125,300

Accepted Answer

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

Question 8

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%.
A) $27,000
B) $1,800
C) $2,700
D) $18,000
E) $270,000

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.

Quiz 1: Market Based Management

Javier's Pizza Point has a margin per unit of $2.00 for a typical pizza, total fixed expenses of $10,000, and average variable costs of $3.00 per pizza. How many pizzas must Javier sell to break even?

Calculate a business's return on sales when it makes a net profit of $500,000 from sales of $3 million.

MVB Inc.obtains a return of 9.8% from assets worth $248.5 million. Calculate its net profit.

Milton-Normand Inc. obtains a return of 13.5% from total invested capital of $790.6 million. Calculate the net profit it generates.

Calculate the total marketing and sales expenses incurred by a business if it produces 30,000 units at $15 per unit and its net marketing contribution is $225,000.

Calculate the total volume of units sold by a business if there is a market demand of 550,000 units and the business has a market share of 25%.

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

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%.