Your client's product costs US$50 to produce, and it sells for US$150. She's sold 10 units and spent US$700 on her Ads campaign. How would you calculate her return on investment (ROI) to help her understand the benefit of using Ads?

Your client's product costs US$50 to produce, and it sells for US$150. She's sold 10 units and spent US$700 on her Ads campaign. How would you calculate her return on investment (ROI) to help her understand the benefit of using Ads?

·          US$1500 (revenue) / US$1200 (cost + Ads spend)
·          [US$1500 (revenue) – 10 (number of products sold)] / US$1200 (cost + Ads spend)
·          [US$150 (sales price) – US$1500 (cost)] / US$700 (Ads spend)
·          [US$1500 (revenue) – US$1200 (cost + Ads spend)] / US$1200 (cost + Ads spend)


Correct Answer is :
•               [US$1500 (revenue) – US$1200 (cost + Ads spend)] / US$1200 (cost + Ads spend)


Source: https://academy.exceedlms.com

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