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A company spends $ 1 0 0 , 0 0 0 on a direct mail piece and increases revenue from $ 2 , 2 0

A company spends $100,000 on a direct mail piece and increases revenue from $2,200,000 to $2,700,000 as a result of the mailing. The contribution margin for the company is 15%. What is the company's ROMI for the direct mail campaign; and would you recommend that they proceed with the campaign?

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