Calculate the marketing return on investment for campaign

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Question: A pizza company was considering a campaign which included placing a newspaper ad in the local paper to entice customer to get a free pizza and included an offer that was buy 1 medium 3 topping pizza and get 1 free. The ad development and placement is expected to cost $1000. The price of each medium pizza sold is $10 and it cost the company $2 dollar to make. The pizza company expects to sell 750 additional pizzas during the campaign period. Calculate the Marketing Return on Investment for this campaign.

ROMI (%) = Incremental Revenue ($) times CM (%) - Marketing Spending ($) times 100/Marketing Spending ($)

Reference no: EM132036148

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