When calculating Return on Investment (ROI) for a promotion, what must the incremental profit be measured against?

Answer

The total cost of the promotion, including lost margin and administrative overhead

ROI measurement requires a comprehensive accounting of all associated costs—the discount margin lost, material production, and overhead—set against the additional profit generated by the promotional activity.

When calculating Return on Investment (ROI) for a promotion, what must the incremental profit be measured against?
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