MKT 100 Study Guide - Final Guide: Herfindahl Index, Fixed Cost

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Laila Rohani

Document Summary

Gross profit = total revenue total variable costs (or cost of goods sold) Net profit = gross profit fixed costs. Percent (%) change = (new value old value) x 100. Herfindahl index = sum [(% market share of each product/company)2] Three [four] firm concentration ratio = % market share competitor 1 + % market share. Competitor 2 + % market share competitor 3 [+ % market share competitor 4] Market share (%) = brand"s sales (in $ or #) x 100. Relative market share (%) = brand"s sales (in $ or #) x 100. Contribution margin (%) = contribution margin ($) x 100 or = contribution per unit ($) Contribution margin per unit ($) = price per unit variable cost per unit. Margin (%) = margin ($) x 100 or = (selling price cost) x 100. Selling price = cost + contribution margin ($) Or = (selling price cost) x 100.