1. • Test Your Understanding: : A company typically sells 100,000 units at $10 per unit. It runs a promotion that discounts each unit by $4 per unit. To promote the discount, the company pays a flat fee of $25,000. The company sells 75,000 additional units in incremental sales. The company tells its marketing team to kill any promotion that has <10% MROI.

     • 1. Should the company proceed with this promotion and discount?

       2. Why or why not?