You sell handicrafts online through Etsy (online retailer). You decide to pay Etsy to promote your handicrafts on their site for one month. The cost is $500 (marketing investment). At the end of the month, you estimate that you sold 200 more units (incremental) of product at a sell price of $15. Your unit margin (%) is 40%. Calculate the MROI% using incremental profit ($) as the Financial Value.
You sell handicrafts online through Etsy (online retailer). You decide to pay Etsy to promote your handicrafts on their site for one month. The cost is $500 (marketing investment).
At the end of the month, you estimate that you sold 200 more units (incremental) of product at a sell price of $15. Your unit margin (%) is 40%. Calculate the MROI% using incremental profit ($) as the Financial Value.
Note: You will need to refer to your Profit Metrics handout to calculate Unit Profit $ [when you know sell price and unit margin (%)] in order to get to get Unit Profit ($). Then you will need to multiply your Unit Profit ($) by your Unit Sales (#) in order to get incremental profit ($) for the MROI calculation.
For this calculation, convert decimal to % (by moving decimal point over to right by two places) but do not enter % symbol.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
