Assume your NPV of each Le Grill Sale will net you $875 and a gross margin of 38 What do net sales and gross margin have to do with return on marketing investment If either margins or incremental sales were lower than 38 and $875 respectively, what would happen to the ROI How does this information ...

Net sales and gross margin play a crucial role in determining the return on marketing investment ROMI because they directly impact the profitability o ...

Assume your NPV of each Le Grill Sale will net you $875 and a gross margin of

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Assume your NPV of each "Le Grill" Sale will net you $875 and a gross margin of 38%.

What do net sales and gross margin have to do with return on marketing investment?
If either margins or incremental sales were lower than 38% and $875 respectively, what would happen to the ROI?
How does this information help you make decisions in allocating your marketing budget?