Question: A marketer is evaluating two marketing campaigns. It is estimated that Campaign 1 would generate incremental revenues of $250,000, at an incremental cost of $50,000

A marketer is evaluating two marketing campaigns. It is estimated that Campaign 1 would generate incremental revenues of $250,000, at an incremental cost of $50,000 and a contribution margin of 30%. Campaign 2 would generate incremental revenues of $50,000, at an incremental cost of $20,000 and a contribution margin of 50%. If the marketer is basing their decision solely on ROMI, which campaign should they go ahead with (calculate the ROMI for each campaign)?

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