Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A farm equipment company was considering a direct mail campaign to remind customers to have tractors serviced before spring planting. The campaign is expected to
A farm equipment company was considering a direct mail campaign to remind customers to have tractors serviced before spring planting. The campaign is expected to cost $1,000 and to increase revenues from $45,000 to $50,000. Baseline revenues for tractor servicing (with no marketing) were estimated at $25,000. The direct mail campaign was in addition to the regular advertising and other marketing activities costing $6,000. Contribution on tractor servicing revenues (after parts and labor) averages 60%. If the direct mail campaign is used, what is the Return on Marketing Investment (ROMI)? Select one: O a. 114% O b. 106% O c. 121% O d. 118%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started