Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

EACTICE QUESTIONS 1 2 3 A direct mail campaign costs $2,000 and it generates $15,000 in gross Revenues. The contribution Margin % on revenues

image text in transcribed

EACTICE QUESTIONS 1 2 3 A direct mail campaign costs $2,000 and it generates $15,000 in gross Revenues. The contribution Margin % on revenues is 40%. Calculate the ROMI for this campaign. A retailer decides to mail out $10 off coupons to all of its loyal customers. The coupon gives customers $10 off when the spend $50 or more in store. The cost of goods sold is 25% not including the coupon. The coupon attracted 500 customers who each spent an average of $75. The cost to mail and produce the coupons was $5000. What is the ROMI for this campaign? A manager of a Car Care Service is trying to Calculate the ROMI for a Marketing Campaign. He intends to mail out 5,000 flyers. The response rate(the number of calls generated) is 10%. For every call that they take 50% of the customers book a service appointment. The average value for each service order is $75. The variable costs per service are $25. The campaign costs $3500.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Reporting and Analysis

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

2nd edition

9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828

More Books

Students also viewed these Accounting questions

Question

Define Heideggers terms throwness, Mitwelt, and Umwelt.

Answered: 1 week ago

Question

How long has the employee been with the organization?

Answered: 1 week ago