1. the formula for contribution per unit
- Variable cost x fixed costs + profit
- Fixed Costs ÷ (selling price per unit- variable cost per unit)
- selling price per unit- variable cost per unit
1 of 20
Other questions in this quiz
2. Which one of these is an example of a variable cost
- employees salary
- Raw materials
3. Define a Autocratic leader
- guide rather than dictate, consulting widely and encouraging everyone to participate in the decision making process.
- take top-down decisions without consulting employees to find out their views. they may provide very little information on the reasons for the decision
- A leader that makes employees contribute to decision making
4. Define A theory X Manager
- dislike employees and reduces their wages
- assume their employees are lazy and prefer to be given firm direction with strict controls> Managers will adopt to a stick and carrot approach to make them work hard. This may involve targets with heavy penalties if they are not met.
- assume that human beings want to work and will commit themselves to work effectively without strict controls. They will engage with the objectives of the organisation, accept responsibility and use their initiative to help solve problems
5. Define what is meant by Price Skimming
- this strategy uses a high price to enter the market. Even though the price is high, some people may still be eager to try a new product once sales from the group of people disappear the price of the product can decrease to attract new customers.
- this strategy uses a low price to enter the market & gain market share
- Some firms set their prices the same as their competitors
Similar Business Studies resources: