Phil's Army Surplus calculator business was going great guns -- especially the newest models with...
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Phil's Army Surplus calculator business was going great guns -- especially the newest models with exclusive camouflage color schemes. Phil sold the calculators from his own dedicated web site: Phil-the-bill.com and had consistent sales of 650 units per week. The calculators sold for $40 earning Phil a margin of 50% percent. He also sold the calculators for the same price through an online department store, BigMuddy.com. BigMuddy earns a 19% commission on sales resulting from clickthroughs originating from BigMuddy. The latter accounts for 15% of total unit sales and somewhat less of dollar sales after commissions were paid.
If he achieves twice the% lift required to breakeven on the $5,000 banner ad, what will be return on marketing investment (ROMI)?
Other calculated variables
CALCULATED VARIABLES: lift = 0.385 (38.5%) incsales = 250
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