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McDonald's is evaluating the costs associated with a global marketing campaign for a new menu launch. Fixed marketing costs are $50 million, and variable advertising
McDonald's is evaluating the costs associated with a global marketing campaign for a new menu launch. Fixed marketing costs are $50 million, and variable advertising costs are projected at $10 million annually. McDonald's expects the campaign to increase annual revenue by $100 million.
Requirements:
- Calculate the total fixed and variable costs for the marketing campaign.
- Determine the ROI and payback period for the campaign investment.
- Analyze the expected revenue impact of the new menu launch.
- Discuss the role of marketing in driving brand awareness and customer engagement.
- Evaluate the financial impact of the campaign on McDonald's financial statements.
- Recommend promotional strategies to maximize customer response and sales.
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