I would've taken the $2.75m and multiplied it by say 20% profit margin to get $550k since the tables says it's $150 of incremental spend (ie revenue, not profit). Am I misreading this?
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Question 3 asks for additional profit but solution just provides revenue, yea?
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Hi Brantley,
Actually the $2.75M refers to the event-level profitability/return which is used in marketing to judge whether an activation or campaign makes sense but indeed the phrasing is unclear so I will adjust it. Your logic is also correct, which is defining the profit in terms of the Retailer's P&L, and based on your logic yes you can take any reasonable assumption on margin and apply it to $150
Brantley, I see Benjamin already clarified the point.
If you're currently casing, sharing here an additional resource that you might find useful:
Best,
Cristian
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