Hi! I have some "Return on Marketing Investment" questions that I am stuck on, with the provided answers. Please help! Even if you are able to answer one of the questions that will be greatly appreciated :).

Question 1:

Venice Fitness is considering selling 1-month gym membership coupons. The regular price of membership is $110 per month. The cost to develop and run the campaign is $70 per coupon. Venice earns an average contribution margin of 70% on regular memberships. It is estimated that 800 customers will buy the coupon. What is ROMI for this marketing campaign to the nearest percent?

Question 2:

Every year Nike has a year-end sale in Toronto to clear out its warehouses prior to the annual inventory, and also to increase sales revenue. The Director of Marketing is evaluating several campaign options for advertising this sale event. He estimates that the direct mail costs $18,000 and generates $50,000 revenues. Knowing that Nike has an average contribution margin of 45%, what is the ROMI, rounded to the nearest whole number, for the direct mail campaign?

Question 3:

A clothing retailer is considering investing in a newspaper advertising campaign to generate more sales. The campaign is expected to cost $3,000 in creative agency fees and $9,000 in media costs. The retailer's contribution margin is 35%. This campaign increased revenues from $110,000 to $170,000. What is the ROMI for the newspaper campaign to the nearest percent?

Question 4:

A direct mail campaign costs $10,000 and it generates $25,000 in gross revenues.The contribution margin % on revenues is 60%. Calculate the ROMI to the nearest whole number for this campaign.

Question 5:

BMW is holding a X-Drive event and has invited 1,500 select loyal customers from across Canada to attend. The cost for the X-Drive event was $100,000. The cost to mail their loyal customers was another $50,000. Everyone received a $500 coupon off their purchase or lease of a BMW vehicle. BMW's usual gross contribution per vehicle sold is $2000. 10% of customers use the coupon and purchase or lease a vehicle. What is the ROMI for this campaign to the nearest percent?

ANS:

1. 10%
2. 50,000 bags
3. 75%
4. 50%
5. 33%