These are sample practice MCQs created for exam preparation. These are NOT official exam questions.
CAMPAIGN REPORT: Holiday promotion cost $285K and generated $1.64M in revenue. FINANCE DATA: Gross margin on promotional sales was 42%. MARKETING MEMO: "Promotions must deliver 2.5x ROI on gross profit to be considered successful." Did the promotion meet the success criteria?
Question:
CAMPAIGN REPORT: Holiday promotion cost $285K and generated $1.64M in revenue. FINANCE DATA: Gross margin on promotional sales was 42%. MARKETING MEMO: "Promotions must deliver 2.5x ROI on gross profit to be considered successful." Did the promotion meet the success criteria?
CAMPAIGN REPORT: Holiday promotion cost $285K and generated $1.64M in revenue. FINANCE DATA: Gross margin on promotional sales was 42%. MARKETING MEMO: "Promotions must deliver 2.5x ROI on gross profit to be considered successful." Did the promotion meet the success criteria?
Options
Answer: (C) No, with 2.42x ROI
Explanation:
Gross profit = $1.64M × 0.42 = $688.8K. ROI = $688.8K/$285K = 2.42x. This falls short of 2.5x requirement, so promotion did not meet success criteria despite positive ROI.
Explanation:
Gross profit = $1.64M × 0.42 = $688.8K. ROI = $688.8K/$285K = 2.42x. This falls short of 2.5x requirement, so promotion did not meet success criteria despite positive ROI.
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