You have been told that a company increased its marketing effort from $2 million to $5 million, resulting in increased sales revenue from $12 million to $21 million. Calculate the company's ratio of incremental sales revenue to incremental marketing effort.

Question

Quizplus · Accepted Answer

The incremental sales revenue is $21 million - $12 million = $9 million. The incremental marketing effort is $5 million - $2 million = $3 million. The ratio is $9 million : $3 million, which simplifies to 3:1.

You Have Been Told That a Company Increased Its Marketing