Calculate the gross profit if the net marketing contribution is $40 million,the market share is 5%,the acquisition cost is $10 million and the retention cost is $7 million.
A)$57 million
B)$23 million
C)$230,000
D)$60 million
E)$2.85 million

Question

Quizplus · Accepted Answer

Gross profit is calculated by adding the net marketing contribution to the acquisition and retention costs. So, $40 million (net marketing contribution) + $10 million (acquisition cost) + $7 million (retention cost) = $57 million.

Calculate the Gross Profit If the Net Marketing Contribution Is