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.

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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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. 

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