b. Email: c. Newsletter: 29. Calculate the ROI (Return on Investment) in the fol

Question

b. Email: c. Newsletter: 29. Calculate the ROI (Return on Investment) in the following scenario: (15 points Company R manufacturers screens for smart phones. The quality of the work by its employees has slipped recently, causing a higher level of defective screens to be manufactured. One screen in ten is defective and must be discarded. The cost each defective, discarded screen is $10. The company president asks the Corporate Communications group to develop a communications plan to help employees understand the importance of reducing the number of defective screens. Before the campaign, Company R was producing 10,000 defective screens each year. After the communications campaign, the number of defective screens dropped to 5,000 a r. The cost of the communications campaign was $20,000. What is the ROl of the communication campaign, expressed as a percentage? Please show or explain your work

Explanation / Answer

Cost before campaign = 10000 * 10 = $100,000
Cost after campaign = 5000 * 10 + 20000 = $70,000
Total saving for the year = $30,000
Return on investment = Savings made/Investment * 100
= 30000/20000 * 100
= 150%

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