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Calculate the following marketing ratios for the2020 period only. 1.a.Return on Sales and Marketing investment (2 marks) b.Sales and Marketing expense to Revenue (2 marks)

Calculate the following marketing ratiosfor the2020 period only.

1.a.Return on Sales and Marketing investment (2 marks)

b.Sales and Marketing expense to Revenue (2 marks)

Please show your calculations.

What is the total percentage revenue change for the periods 2016-2017, 2017-2018, 2018-2019 and 2019-2020? (4 marks).

Jane first started shopping at Star Sports Development in 2016. She spends on average $170 per transaction and makes six transactions per year. What is Jane's customer lifetime value if she is expected to continue buying from the company for 10 more years from today? (2 marks).

Please show your calculations.

image text in transcribed
Part C: Information analysis The following table reports the sales and expenses for Star Sports Development, an online sports retailer, for the period 2016-2020. Star Sports Development sells Racketball and Squash equipment (rackets, balls, grips and clothing) in the UK, Europe and the US. They also run school and youth coaching programs, and in 2019 launched youth squash coaching camps to countries including Australia, New Zealand and Singapore. They are a relatively small competitor in the Sports Retail market, but serve a valuable niche with the customers they target (Squash and Racketball players). Item 2016 2017 2018 2019 2020 Operating Revenue 375,317,000 685,629,000 1,013,553,000 1,236,681,000 1,296,582,000 Cost of Goods Sold 219,886,000 382,679,000 552,683,000 667,290,000 688,811,000 Gross Profit 155,431,000 302,950,000 460,870,000 569,391,000 607,771,000 Operating Expenses 108,110,000 225,154,000 349,704,000 422,155,000 444,333,000 Profit (EBITDA) 47,321,000 77,796,000 111,166,000 147,236,000 163,438,000 Sales and marketing expenses 1,962,000 17,324,000 23,773,000 23,766,000 27,599,000

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