QUESTION 4Calculate the net profitQUESTION 5Calculate the ROAI (Return on Investment for Advertising) as a percent to two decimal places (XXX.XX). Do not includethe % signQUESTIONCalculate the cost per order (CPO) (XXX.XX]. Do not include the $ signQUESTION 7Did you meet your advertising allowable?O YesNo Wawa, Inc., a startup footwear company, currently sells just one type of sneakers, Tribe. As Wawa's marketing vice-president in charge of its anniversary sales of its Tribe sneakers, you were given a marketing budget of $2.5 million forthe upcoming sale for one 30-second direct-response internet ad. The ad provides the website address that will allowWawa's to track when a hit has resulted from people seeing this particular ad. You get 1.7 million hits on that website. Isthis good? How many Tribe sneakers did you eventually sell as a result? Did the ad pay for itself or not? Could you havedone better by spending your money on some other form of advertisingLet's say that of the 1.7 million visitors to your site, 0.005 percent ordered the Tribe sneakers by visiting your website.You, of course, created a special Web address just for this commercial, so you could accurately evaluate how manyresponses and orders this one ad produced. Let's also say that the price the Tribe sneakers went from $165 to its salesprice of $115, including shipping and handling. The variable costs come to $75. You had an advertising allowable of $25per order. So, now you can make some calculationsCalculate the contribution margin - to two decimal points. Do not write $ signQUESTION 2Calculate the number of orders or hitsQUESTION 3Calculate the break-evenQUESTION 4Calculate the net profit.

Here given the details of the advertisement which are given in the internet which can be generated…

pping per order. So, now you can make some calculations The variable costs come to $75. You had an advertising allowable of $25 Calculate the contribution margin - to two decimal points. Do not write $ sign QUESTION 2 Calculate the number of orders or hits QUESTION 3 Calculate the break-even

pping per order. So, now you can make some calculations The variable costs come to $75. You had an advertising allowable of $25 Calculate the contribution margin - to two decimal points. Do not write $ sign QUESTION 2 Calculate the number of orders or hits QUESTION 3 Calculate the break-even

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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