I need help answering the questions below... 1. Using the assumptions provided in Excel Spreadsheet, what is the total number of customers generated from this advertising?2. If Dr. Corneal’s customers spend $300 on average, what is the total revenue generated from this advertising?3. The cost to purchase the advertising is as follows:Google Ads: $5,000Newspapers: $3,000Magazines: $6,000Radio: $1,000Calculate the overall ROI and the ROI per advertising source. How do these number help you plan your advertising budget going forward? To answer this question, define ROI, explain how ROI is used (see your book), apply the numbers you have calculated and show how you would use these numbers for planning purposes.Note - ROI is expressed as a percent. ROI= (Revenue - Costs)/Costs BC1 Dr. Corneal's Projected Sales Funnel2A34 Prospects (5000)56 Leads LevelWears Glasses78 Leads Level B910 Total Leads Level A+B1112 Opportunities1314 CustomersFashion Sunglasses1516 Total Customers174,5003,375Google Newspapers Magazines Radio3,0001,0004503,825191D962,5001,8752502,12543E222,2503002,5507739F3132 Average conversion rate from Opportunity to Customer - 50%9001001,000105GH1819 Assumptions:20 5,000 people live within 15 miles of Dr. Corneal's store21 90% use Google regularly, 50% read newspaper, 60% read magazines, 20% listen to radio22 Based on medical data,on average 75% of the population needs glasses23 Radio listeners are older, have more eye issues, 90% need glasses24 10% of people don't need glasses but like fashion sunglasses2526 Average Call To Action Response Rates27 Google5%28 Newspapers2%29 Magazines3%30 Radio1%IJ

Data given: Average conversion rate from opportunity to customer=50%

1. Using the assumptions provided in Excel Spreadsheet, what is the total number of customers generated from this advertising? 2. If Dr. Corneal’s customers spend $300 on average, what is the total revenue generated from this advertising? 3. The cost to purchase the advertising is as follows: Google Ads: $5,000 Newspapers: $3,000 Magazines: $6,000 Radio: $1,000 Calculate the overall ROI and the ROI per advertising source. How do these number help you plan your advertising budget going forward? To answer this question, define ROI, explain how ROI is used (see your book), apply the numbers you have calculated and show how you would use these numbers for planning purposes. Note - ROI is expressed as a percent. ROI= (Revenue - Costs)/Costs

1. Using the assumptions provided in Excel Spreadsheet, what is the total number of customers generated from this advertising? 2. If Dr. Corneal’s customers spend $300 on average, what is the total revenue generated from this advertising? 3. The cost to purchase the advertising is as follows: Google Ads: $5,000 Newspapers: $3,000 Magazines: $6,000 Radio: $1,000 Calculate the overall ROI and the ROI per advertising source. How do these number help you plan your advertising budget going forward? To answer this question, define ROI, explain how ROI is used (see your book), apply the numbers you have calculated and show how you would use these numbers for planning purposes. Note - ROI is expressed as a percent. ROI= (Revenue - Costs)/Costs

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 12SP

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