Question
Assume the following marketing costs and profit values associated with an upcoming promotional campaign: Promotional cost per Facebook Impression: $0.97 The net value of a
Assume the following marketing costs and profit values associated with an upcoming promotional campaign:
Promotional cost per Facebook Impression: $0.97
The net value of a paid order (including average billing costs): $15.67
Cost of an unpaid order (including average billing costs): $7.87
Also, assume the following probabilities of ordering and paying for three customers.
Probability of Probability of
Customer Ordering Not Paying
Mr. Gita 25% 07%
Ms. Nikita 36% 20%
Which customer is more profitable?
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Expected Profit – who is the most profitable
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
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9th Edition
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