Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A local dental practice decides to run a Groupon campaign. The campaign offered $340 worth of dental services (such as teeth whitening) for $145. For

A local dental practice decides to run a Groupon campaign. The campaign offered $340 worth of dental services (such as teeth whitening) for $145. For the total campaign, 225 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Lets assume that 26% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 50%. Finally, the bill for the average Groupon customer was $380. The dental practice negotiated a 50/50 split with Groupon.

Calculate the expenses of the Groupon campaign.

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

Ethics In Finance

Authors: John R. Boatright

3rd Edition

ISBN: 1118615824, 978-1118615829

More Books

Students also viewed these Finance questions