Assume the following marketing costs and profit values associated with an upcoming promotional campaign: Promotional cost per
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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 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?
Show your result and work in EXCEL step by step.
Expected Profit – who is the most profitable
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date: