Marketing Metrics Answers

Metrics Mastery Worksheets are designed to be in class exercises that your students can work on in class. This is a master document that provides all worksheets questions and answers. You can modify or change it as needed in order to prepare one page two sided exercises for your students to hand out in class. You can also easily turn the answers into powerpoint slides to review the answers in class.

Table of Contents

Worksheet: Metric 1 Expense Types 2

Worksheet: Metric 2 Percentage Change 5

Worksheet: Metric 3 Market Share & Market Analytics 8

Worksheet: Metric 4 Contribution Margin 11

Worksheet: Metric 5 Mark-up & Margin 14

Worksheet: Metric 6 Pricing Wholesale to Retail 17

Worksheet: Metric 7 Break-Even 20

Worksheet: Metric 8 Return on Marketing Investment (ROMI) 23

Worksheet: Metric 1 Expense Types

1) The Comfy Chair Company makes reclining chairs at its plant and sells them exclusively through its own retail store. It has the following expenses: Plant rent and taxes = $12,000.00 Office and management expenses = $220,000.00 Machinery and equipment purchased = $100,000.00 Direct materials = $27.00/chair Direct labour = 4 hours/chair @ $14.00/hour Transportation = $5.00/chair Commercial store front unit purchase = $500,000.00 Advertising costs = $100,000.00 Sales staff wages before commissions = $250,000.00 Commission = $12.00/chair a) Identify the Comfy Chair Company’s variable costs. b) What is the total cost to produce and sell each reclining chair? c) Identify the Comfy Chair Company’s fixed costs. d) What are the total fixed costs? e) Identify the one-time fixed costs incurred by the Comfy Chair Company. f) What are the total one-time fixed costs?

Answer: (a) Direct materials = $27.00/chair Direct labour = 4