This is for a marketing class but the revolves around accounting. I was wondering if u can help me figure out the ROI ( return on investment ).
Assumptions Number of stores Number of stores pilot tested (calculate) Best Buy store traffic Traffic per store Number of SWS in each store Total area of SWS in each store (calculate 1,400 140 2,000,000,000 2,000 t to train associates in each store (calculat One-time cost to set up SWS each store (calculate) $2 SWS traffic fee collected by Best Buy/person so% 5% $100 S20 20% 25% Incremental revenue due to SWS (S/sq.ft/year) Profit margin on incremental revenues Revenues from the pilot-SWS sing fee + SWS cfee + Cross-sellir ofaccessore rginfr SWS leasing fee revenue (calculate) SWS traffic fee revenue (calculate) Cross-selling of accessories (calculate Profit from products sold in SWS (calculate) $560,000 $10,000,000 $1,000,000 $40,000 $11,600,000 otal revenue from pilot project (calculate) Cost Setup cost (calculate) y cost $7,000,000 $1,400 $8,400,000 aining cost (calculate Total cost of the pilot (calculate) ROI (net profit) for 10% of stores (calculate) ROI (net profit) for all stores (calculate) Assumptions Number of stores Number of stores pilot tested (calculate) Best Buy store traffic Traffic per store Number of SWS in each store Total area of SWS in each store (calculate 1,400 140 2,000,000,000 2,000 t to train associates in each store (calculat One-time cost to set up SWS each store (calculate) $2 SWS traffic fee collected by Best Buy/person so% 5% $100 S20 20% 25% Incremental revenue due to SWS (S/sq.ft/year) Profit margin on incremental revenues Revenues from the pilot-SWS sing fee + SWS cfee + Cross-sellir ofaccessore rginfr SWS leasing fee revenue (calculate) SWS traffic fee revenue (calculate) Cross-selling of accessories (calculate Profit from products sold in SWS (calculate) $560,000 $10,000,000 $1,000,000 $40,000 $11,600,000 otal revenue from pilot project (calculate) Cost Setup cost (calculate) y cost $7,000,000 $1,400 $8,400,000 aining cost (calculate Total cost of the pilot (calculate) ROI (net profit) for 10% of stores (calculate) ROI (net profit) for all stores (calculate)