Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed
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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Agile Audit Transformation And Beyond

Authors: Toby DeRoche

1st Edition

1032062894, 978-1032062891

More Books

Students also viewed these Accounting questions

Question

Solve: |x 4| 0.01

Answered: 1 week ago