you recently started a small affiliate marketing service. last month, you spent $1,000 on a pay - per…

you recently started a small affiliate marketing service. last month, you spent $1,000 on a pay - per - click (ppc) online advertising campaign that resulted in $1,200 in sales.\nwhat was last month’s return on investment (roi) for your affiliate marketing service?\n80%\n.2%\n120%\n20%

you recently started a small affiliate marketing service. last month, you spent $1,000 on a pay - per - click (ppc) online advertising campaign that resulted in $1,200 in sales.\nwhat was last month’s return on investment (roi) for your affiliate marketing service?\n80%\n.2%\n120%\n20%

Answer

Explanation:

Step1: Recall ROI formula

ROI = $\frac{Net\ Profit}{Cost\ of\ Investment}\times100%$

Step2: Calculate net profit

Net profit = Sales - Cost of investment. Here, sales = $1200$ and cost of investment = $1000$. So net profit = $1200 - 1000=200$.

Step3: Calculate ROI

ROI = $\frac{200}{1000}\times100% = 20%$

Answer:

20%