Total Return Assignment | Homework For You
Spend curves were expressed using following formula: 𝑅(𝑠) = 𝐴[1 − exp(− 𝑠/𝐵 )], where s is the spend on that channel and A and B are constants. We found the following values for the parameters A and B for D, S, and O.
| D | S | O | |
| A | 9 | 7.5 | 15 |
| B | 4 | 2 | 6 |
Note that, here, s and R(s) are expressed in $10,000. So, for last quarter, D,S, and O would be 5, 5, and 15, respectively. R(s) for display, search, and offline is easily calculated by the formula, and is 6.42, 6.88, and 13.77, respectively. The total return would be 27.07 (rounded off).
The firm is also considering investing in M. If yes, then M expenses are $20,000 for the quarter. But it was found that the quarterly return for M is only $18,000.
A.)How should the firm allocate the $250,000 quarterly budget to maximize total return?
B.) how much money should the firm spend on D, D, O, and M, respectively?
3.)What is the predicted total return (in $) and the corresponding ROI (in %)? Get Finance homework help today
