Evaluating a New Marketing Campaign's ROI

{"problem":"A company spends $12,000 on a marketing campaign, generating $30,000 in revenue with a gross margin of 60%. What is the ROI of the campaign?","pitfall":"Novices often calculate ROI using total revenue instead of net profit, which can mislead decision-making about campaign effectiveness.","steps":[{"label":"Step 1: Calculate Gross Profit","calculation":"Gross Profit = Revenue × Gross Margin\nGross Profit = $30,000 × 0.60 = $18,000","annotation":"This step focuses on gross profit, the actual revenue available after accounting for costs directly associated with the product sold, which is crucial for calculating real returns."},{"label":"Step 2: Determine Net Profit from the Campaign","calculation":"Net Profit = Gross Profit - Campaign Costs\nNet Profit…

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