Question

What is the Return on Marketing Investment (ROMI) when you spend $5,000 on advertising and generate...

What is the Return on Marketing Investment (ROMI) when you spend $5,000 on advertising and generate an increase in sales of $10,000 on a product with a gross margin of 60%?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Return on marketing investment can be calculated by the following formula:

Increase in Sales = $10,000

Gross Profit Margin = 60%

Adveritising Cost = $5000

Substituting the values in the above formula:

Return on Marketing investment is 20%

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Return on investment (ROI) is profit divided by investment. In marketing, ROI is determined as incremental...
Return on investment (ROI) is profit divided by investment. In marketing, ROI is determined as incremental sales times gross margin minus marketing investment, all divided by marketing investment. Suppose that a company plans to spend $3 million to place search engine ads and expects $15 million in incremental sales. Its gross margin is estimated to be 45%. Develop a spreadsheet to compute the marketing ROI. Use the spreadsheet to predict how ROI will change if the incremental sales estimate is...
ROMI= (Increase in Sales – Marketing Campaign Cost) / Marketing Campaign Cost The figures from Veronica...
ROMI= (Increase in Sales – Marketing Campaign Cost) / Marketing Campaign Cost The figures from Veronica show that revenue before each campaign was $12,000. The cost of each campaign and subsequent revenues are as follows: Television Campaign cost: $3,000 Revenue after campaign: $16,000 Social Media (Facebook, Twitter, YouTube, and LinkedIn) Campaign cost: $12,000 Revenue after campaign: $30,000 Website Campaign cost: $5,000 Revenue after campaign: $18,000 ABCD 1 2 3 4 5 6 7 8 Television Social Media Website Revenues Before...
What annual rate of return is earned on a $5,000 investment when it grows to $9,500...
What annual rate of return is earned on a $5,000 investment when it grows to $9,500 in four and in six years? How do you solve this by selecting the insert financial formula option in excel?
Profit Margin, Investment Turnover, and Rate of Return on Investment The condensed income statement for the...
Profit Margin, Investment Turnover, and Rate of Return on Investment The condensed income statement for the International Division of King Industries Inc. is as follows (assuming no service department charges): Sales $884,000 Cost of goods sold 397,800 Gross profit $486,200 Administrative expenses 176,800 Income from operations $309,400 The manager of the International Division is considering ways to increase the rate of return on investment. a. Using the DuPont formula for rate of return on investment, determine the profit margin, investment...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $1,144,000 Cost of goods sold 514,800 Gross profit $629,200 Administrative expenses 400,400 Income from operations $228,800 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $1,848,000 Cost of goods sold 831,600 Gross profit $1,016,400 Administrative expenses 646,800 Income from operations $369,600 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on...
Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the Consumer Products...
Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as follows (assuming no support department allocations): Sales $798,000 Cost of goods sold (359,100) Gross profit $438,900 Administrative expenses (239,400) Operating income $199,500 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $944,000 Cost of goods sold 424,800 Gross profit $519,200 Administrative expenses 188,800 Income from operations $330,400 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on...
1. During the first week of a search advertising campaign, your ad was served to 10,000...
1. During the first week of a search advertising campaign, your ad was served to 10,000 people and you are paying on average $3.35 PPC. It the CTR is 1.35%, then how much did you spend in the first week? 2. Your display advertising campaign is priced at 13.12 CPM with a CTR of 0.05%. What is the total cost of 100,000 impressions? 3.You are deciding whether or not to purchase a display advertising campaign on a CPC or CPM...
Marketing Imagine that you are working as an intern at an advertising agency and the agency...
Marketing Imagine that you are working as an intern at an advertising agency and the agency just won a new account, a bottled team named Leafs Alive. The sale of bottled tea is surging, with the industry reaching $10.5 billion in sales in 2014. 1. what consumer trends are most likely driving the demand for this product 2.what cultural, social, psychological, and behavioral factors influence this market?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT