You have been told that a company increased its marketing effort from $3 million to $5 million, resulting in increased sales revenue from $10 million to $20 million. Calculate the company's ratio of incremental sales revenue to incremental marketing effort.

Question

Quizplus · Accepted Answer

The incremental sales revenue is $10 million ($20 million - $10 million), and the incremental marketing effort is $2 million ($5 million - $3 million). The ratio is 10:2, which simplifies to 5:1.

You Have Been Told That a Company Increased Its Marketing