Question
A company is considering whether to invest in a customer acquisition initiative costing $2 million, which is expected to yield a gross margin of $2.4
A company is considering whether to invest in a customer acquisition initiative costing $2 million, which is expected to yield a gross margin of $2.4 million. After investing $1 million, the company realises that the actual gross margin will only be $1.8 million. Calculate the incremental ROMI for the initiative. a. -20% b. 20% . 80% d. 40%
A company estimates that it can receive a gross margin of $800,000 if it invests $500,000 in marketing initiatives. However, if it invests $1 million, its gross margin increases to $1.5 million. Calculate the incremental ROMI for the additional investment. a. 60% b. 40% . 50% d. None of the above
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