Question

Baldwin Company's product Best has Fixed Costs of $50,000, capacity of 10,000 units, sales of 15,000 units, selling price per unit of $25, 1stshift labor costs per unit of $10, and a contribution margin ratio of 50% prior to overtime due to using the second shift. Baldwin is considering investing in a Marketing program that costs $22,000 and is projected to increase sales volume by 10%. All else constant, if Baldwin makes this decision based on a minimum acceptable ROI in the first year of 50% for the project, should they invest in this marketing program?

Answer 1

Yes, because the investment will increase Baldwin's Contribution Margin by $12,000 and their Fixed Costs by $20,000 resulting in a 60% ROI for this investment in the first year.

Explanation:

This requires the ability to develop and maintain partnerships and encourage people to invest into your potential. Whether either investment opportunity is a brand spanking new venture, advanced business ideas or conventional goods, such as stocks and properties, does not matter. By using marketing techniques, you have to lay the groundwork for reputation and confidence and keep potential buyers happy consumers who know like you will respond to their investment needs.

To execute marketing tactics to draw more investors, you need to learn your target market.

Locate an interactive event, to something that you invite your target market, to attract attention for your business opportunities.