a)Suppose you are the marketing manager for MyTeam.com, an online seller of jerseys for sports teams. Philly.com has offered to sell you advertising on a pay-per-conversion basis at $5 per conversion where a conversion is sale. If the gross margin on sales is 37% and the average order value is $118.23, is the advertising worth the cost?

Yes. Gross profit on sales= 118.23 * 37% = 43.7451 Net profit = 43.7451 5 = $38.75

b) How low could the average order value be and still justify the cost of the advertising?