Gross margin have to do with return on marketing investment

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Assume your NPV of each "Le Grill" Sale will net you $875 and a gross margin of 38%.

1. What do net sales and gross margin have to do with return on marketing investment?

2. If either margins or incremental sales were lower than 38% and $875 respectively, what would happen to the ROI?

3. How does this information help you make decisions in allocating your marketing budget?

Reference no: EM133313531

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