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a) What is the incremental revenue-to-cost? Hint: Within our context, Incremental revenue-to-cost = Incremental revenue/ cost of marketing Investment Incremental revenue refers to the additional
a) What is the incremental revenue-to-cost? Hint: Within our context, Incremental revenue-to-cost = Incremental revenue/ cost of marketing Investment Incremental revenue refers to the additional revenue earned from selling one additional unit. Incremental profit is the profit gain or loss associated with a given managerial decision. Total profit increases so long as incremental profit is positive. When incremental profit is negative, total profit declines. b) What is the return-on-marketing-investment (ROMI)? Hint: Within our context, ROMI = (Incremental gross profit gained - Cost of marketing investment)/Cost of marketing investment
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