Question
Below you will find data for two companies website performance for February. Be sure to read each thoroughly and then answer the following questions. Berthas
Below you will find data for two companies website performance for February. Be sure to read each thoroughly and then answer the following questions.
|
| Berthas Big Wheels | Scottys Scooters |
| Total Rich Media Display Time (in minutes) | 345,039 | 259,331 |
| Total Rich Media Impressionsa | 300,594 | 132,594 |
| Clickthroughsb | 4859 | 3039 |
| Website Cost | $35,000 | $30,000 |
| Visitorsc | 59493 | 49302 |
| Purchasing Customers | 1253 | 943 |
| Bounces | 45302 | 21594 |
| Shopping Carts Started | 2432 | 1439 |
| Total Revenue | $75,000 | $58,000 |
| Units Sold | 2345 | 2100 |
| Contribution per Unit | $19 | $16 |
a: also use this number for total impressions
b: also use this number for clicks
c: also use this number for visits
- Total profit?
- ROI?
- Scottys Scooters thinks that $10,000 in improvements to their website will improve their conversion rate by 2%. Is this a good investment in profit terms?
- For Berthas Big Wheels, which is more advantageous, in profit terms: a 5% decrease in abandonment rate or a 2% increase in conversion rate?
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Accounting Principles Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara A. Trenholm, Valerie A. Kinnear, Joan E. Barlow
6th Canadian Edition
1118557328, 978-1118557327
