What is their Expected Revenue

Assignment Help Marketing Management

Reference no: EM133949062

Questions

1. A company expected to sell 10,000 units of their products at $2 each. What is their Expected Revenue?

2. The company actually sold 9,000 units at $1.75 each. What is their Actual Revenue?

3. Calculate the Performance Variance (Expected Revenue less Actual Revenue)

4. Calculate the firms Actual Revenue as a percentage of their Expected Revenue. (Actual Revenue divided by Expected Revenue x 100)

5. As a result, the firms Actual Sales were ____________ percent less than their Expected Sales.

According to the data above, this company made far fewer sales than it had expected. How do you know whether this under-performance was due to the fact that the marketing manager lowered the product price or due to the fact that not enough units (quantity) were sold? To determine which factor (price or quantity) caused the largest portion of the performance variance, calculate the following.

Use these formulas to determine if the performance variance was due to a decrease in price or a decrease in quantity sold.

6. (Expected Selling Price - Actual Selling Price) x Actual Quantity = Performance Variance due to a change in price(1 mark)

7. $__________ lost due to a decrease in price (__________% of the variance was due to a decrease in price.) (1 mark)

8. Expected Selling Price x (Expected Quantity - Actual Quantity) = Performance Variance due to a change in quantity sold

9. $_____________ lost due to a decrease in quantity sold (___________% of the variance was due to a decrease in quantity sold.)

10. Why might actual revenue have been less than expected? Identify some of the reasons. (Consider the component that was most responsible for the performance variance.)

11. In microeconomics we learn that lowering price will result in increased quantity demanded. Did this happen for this company? Explain

12. Since a large portion of the variance was due to a price decrease, would increasing the price again reduce the variance? Explain

13. How might the variance be eliminated? Explain.

Reference no: EM133949062

Questions Cloud

Summarize strengths and weaknesses of the femtech sector : Describe the strengths and weakness of this company/product. Include at least 1 review from user(s) if they are available either on the company website

What strategies can riverbend pursue to prepare for value : What strategies can Riverbend pursue to prepare for value-based care while addressing the financial shortfalls of Medicaid reimbursement?

Types of designs used in quantitative methods of inquiry : Discuss the role of objectivity and subjectivity in qualitative and quantitative scientific inquiries and Identify the key types of designs used in quantitative

What body system change places the client at greatest risk : While providing care to a client with a potassium level of 7 mEq/L, what body system change places the client at the greatest risk?

What is their Expected Revenue : A company expected to sell 10,000 units of their products at $2 each. What is their Expected Revenue?

Bottled Water-Money Down the Drain : Imagine that you work in the public relations department of one of these bottled water companies. How might you respond to these criticisms?

Why is organizational change and innovation important : Why is organizational change and innovation important, why is it necessary?

Corporate Social Responsibility policies : What can the procurement team do to evaluate the contractor based on its Corporate Social Responsibility (CSR) policies?

Evaluates the impacts of current environment : Evaluates the impacts of the current environment on Australia's Education and Tourism Exports and (2) proposes specific recommendations

User Account

All Pages