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zzz [600]
3 years ago
14

A mini-calculator company saw its sales decrease over the last year and decided to launch a new marketing mix strategy to boost

awareness and sales. One of the company’s implemented tactics was to sell its mini-calculators through Amazon. It spent $5,000 to add new colors to their product offerings and $5,000 launching a video ad campaign. After tracking its online sales metrics, it saw a leap in sales of $20,000 in three months. What is this company's ROI on their marketing efforts?
Business
1 answer:
Contact [7]3 years ago
5 0

Answer:

The ROI is 2

Explanation:

For computing the ROI we have to apply the formula which is shown below:

= Return in terms of benefit ÷ investment

where,

Return is in terms of sales which equals to $20,000

And, the investment equals to

= New color cost + video launching cost

= $5,000 + $5,000

= $10,000

Now put these values to the above formula

So, the answer would be equal to

= $20,000 ÷ $10,000

= 2

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