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Movano Health ( MOVE ) develops medical - grade devices that capture vital health and wellness data and translate it into personalized insights that empower

"Movano Health (MOVE) develops medical-grade devices that capture vital health and wellness data and translate it into personalized insights that empower consumers to live healthier, happier, and more balanced lives" (About Us, n.d.). Movano currently sells "the Evie ring, [which] tracks various health metrics such as sleep quality, heart rate, activity, temperature and much more" (Lipski,2024).
After the Evie Ring reception at its showing at the Consumer Electronics Show (CES) in Las Vegas, Movano decides to conduct a limited supply sales promotion. Movano's marketing vice president in charge of the sales promotion of these Evie Rings, you were given a marketing budget of $510,000 for a 30-second directresponse internet ad. The ad provides the website address that will allowMovano to track when a hit (or order) has resulted from people seeing this particular ad. You get 1,200,000 hits on that website. Is this good? How many Evie Rings did you eventually sell as a result? Did the ad pay for itself or not? Could you have done better by spending your money on some other form of advertising?
Let's say that of the 1,200,000 visitors to your site, 0.002%(or 0.02) ordered the Evie Ring by visiting your website. You, of course, had created a special Web addressjustfor this direct marketing ad, so you could accurately evaluate how many responses and orders this one ad produced. Let's also say that the price of the Evie Rings went from $337.50 to its sales price of $270, including shipping and handling. The variable costs come to $100. You had an advertising allowable of $25 per order. So, now you can make some calculations.
WITH THIS INFORMATION FIND :
1) the contribution margin
2) the number of orders
3) the break even
4) the new profit
5) the ROAI (multiply answer by 100)
6) cost per order
7) did you meet your advertising allowable?
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