Justine runs a business selling hockey sticks in Canada and generally expects to sell about $15,000...

Justine runs a business selling hockey sticks in Canada and generally expects to sell about $15,000 worth of sticks per month (Canadians play roller hockey in the summer). In June, she runs a radio advertising campaign which costs $1500. As part of her advertising campaign she offers a $5 discount on any hockey stick (the sticks retail for $50 normally with a margin of 35%). In June she records sales of $22,005.

What is the lift % from the advertising campaign in both dollars and units?
What is the cost to Justine per incremental sales dollar she saw if you ignore the discount?
What is the Return on Marketing Investment if you factor in the discount?
If she could get the manufacturer to drop the price she pays for hockey sticks by $1.50, what would be the pass through percentage of her discount?

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Expert Solution

Feedback would be appreciated.

ekkarill92 answered 1 year ago

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