Choose the right answer form the given option for given below questions.

1. Firm A has set an MSRP of MXN 25 for its product, and the average discount to distributors is 30%. What is revenue on 40 million units?

MXN 100 mill.

MXN 300 mill.

MXN 700 mill.

MXN 1 bill.

2. A US subsidiary in India had earnings of INR 90 million. If $1 is worth INR 45, how much are earnings in dollars?

$1 mill.

$2 mill.

$45 mill.

$90 mill.

$4,050 mill.

3. A firm is running 12 different ad campaigns in Brazil with a total budget of BRL 40 million (exchange rate: BRL 2.2517 per USD), but the campaigns do not appear to be effective. What would you recommend?

Increase the number of campaigns to appeal to a wider audience.

Increase spending on the campaigns to reach more potential customers.

Reduce spending on the campaigns to increase efficiency.

Reduce the number of campaigns to focus on the target customer segment.

4. Segmentation in marketing is the process of dividing a large, diverse market into smaller, more homogenous groups.

True

False

5. Higher price discounts and promotion allowance will help push products through the wholesale channel.

True

False

6. A product with an MSRP of CNY 15.00 has a promotion allowance of 15%. How much will the distributor receive in promotion allowance for each unit?

1.50

2.25

3.00

5.00

7. Sales in Argentina were ARS 715 million, with COGS ARS 320 million, shipping/tariffs ARS 107 million, and promotional allowance ARS 111 million. What is the gross margin on the product?

55%

40%

32%

25%

8. A product selling in France has a price to the channel of EUR 10.00, fixed costs of EUR 33 million, and variable costs of EUR 4.50. How many units does the company have to sell to break even?

3 mill.

6 mill.

10 mill.

33 mill.

9. When entering markets in a region, you should always choose the country with the lowest manufacturing costs for local production.

True

False

10. Current cost to source from the home plant to Country A is $0.55 per unit, plus $0.02 in shipping (there is no tariff). If product is sourced from Country B, manufacturing cost is expected to be 20% lower; but shipping will increase to $0.06, and there is a tariff of 15% on CIF. What will the savings be on 100 million units if sourcing for Country A switches from the home plant to Country B?

No savings.

$3 million

$7 million

$20 million