Caravan Inc., manufactures one product: bicycles. Below is some information that is used to evaluate the company's marketing performance in fiscal year 2019 and make plans for fiscal year 2020. Use this information to calculate the required metrics.

• Bicycle price: $1,450
• Manufacturing cost: $369/bicycle
• Fixed costs: $2,500,000 overhead + $1,000,000 marketing expenses = $3,500,000 total
• Units sold: 3,587

What is their Breakeven Revenue?

Caravan's Net Sales for 2019 was $5,100,000. What was their Net Marketing Contribution (NMC)?

Given their Net Marketing Contribution, what is their Marketing Return on Investment (MROI)? (express as a % and round to 2 decimal places)

What was their Marketing Return on Sales (MROS)? (express as a % and round to 2 decimal places)

Answer rating: 100% (QA)

To calculate the required metrics lets go through each question one by one 1 Breakeven Revenue Break... View the full answer