Bea Ware has estimated that a recent advertising campaign resulted in a sales increase of $20 million. She knows that her company spent $2.5 million on the campaign so she divides the sales increase by the advertising budget. Bea is estimating:

Question

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Bea Ware is estimating the return on advertising investment by dividing the sales increase ($20 million) by the advertising budget ($2.5 million). This calculation gives her the ROI, which indicates how effective the advertising campaign was in generating sales compared to the cost of the campaign.

Bea Ware Has Estimated That a Recent Advertising Campaign Resulted