MGT 103 - Midterm 2 Questions, Correct
Answers, and Complete Solutions | 2026 Update
Sales Forecasting - ANSWERS process of estimating future sales
Sales Forecasting is based upon - ANSWERS 1. Past Sales Data
2. Industry-wide Comparisons
3. Economic Trends
4. Market Research & Competitive Intelligence
Who is responsible for developing the Sales Forecast? - ANSWERS Marketing
The only thing we know for certain about a Sales Forecast is... - ANSWERS it
will be wrong
Sales Budget - ANSWERS a detailed schedule showing expected sales
expressed in both dollars and units. The Sales Budget starts in the summer, and is
due in the Fall.
The "Ask"; you would ask for - ANSWERS 1. People (marketing people to do
the work)
2. Money (Funds needed to launch)
, Compound Interest Formula - ANSWERS A = P(1 + r/n)^(n x t), r is the rate, n is
the number of times compounded, t is time
Profit formula - ANSWERS Sales (Revenue) - Expenses
Market Cap - ANSWERS represents the value of a company, (what the market
feels the company is worth)
Market Cap Formula - ANSWERS (Stock price)x(number of outstanding
shares), where the number of outstanding shares is determined by the company.
Pareto Principle (80/20 rule) - ANSWERS 80% of business, (OUR SALES), comes
from 20% of the customers
Market Basket - ANSWERS a representative collection of goods and services.
Always includes YOUR BRAND.
Market Share: 5 key actionable metrics - ANSWERS 1. Our product's market
share (and key competitors) and their market share
2. What's the time frame?
3. What's the market we're talking about?
4. Growth or decline in share
5. Market value
Market Share Questions: - ANSWERS 1. Who uses? Marketing, Sales, or both?
Answer - both
Answers, and Complete Solutions | 2026 Update
Sales Forecasting - ANSWERS process of estimating future sales
Sales Forecasting is based upon - ANSWERS 1. Past Sales Data
2. Industry-wide Comparisons
3. Economic Trends
4. Market Research & Competitive Intelligence
Who is responsible for developing the Sales Forecast? - ANSWERS Marketing
The only thing we know for certain about a Sales Forecast is... - ANSWERS it
will be wrong
Sales Budget - ANSWERS a detailed schedule showing expected sales
expressed in both dollars and units. The Sales Budget starts in the summer, and is
due in the Fall.
The "Ask"; you would ask for - ANSWERS 1. People (marketing people to do
the work)
2. Money (Funds needed to launch)
, Compound Interest Formula - ANSWERS A = P(1 + r/n)^(n x t), r is the rate, n is
the number of times compounded, t is time
Profit formula - ANSWERS Sales (Revenue) - Expenses
Market Cap - ANSWERS represents the value of a company, (what the market
feels the company is worth)
Market Cap Formula - ANSWERS (Stock price)x(number of outstanding
shares), where the number of outstanding shares is determined by the company.
Pareto Principle (80/20 rule) - ANSWERS 80% of business, (OUR SALES), comes
from 20% of the customers
Market Basket - ANSWERS a representative collection of goods and services.
Always includes YOUR BRAND.
Market Share: 5 key actionable metrics - ANSWERS 1. Our product's market
share (and key competitors) and their market share
2. What's the time frame?
3. What's the market we're talking about?
4. Growth or decline in share
5. Market value
Market Share Questions: - ANSWERS 1. Who uses? Marketing, Sales, or both?
Answer - both
