Below is the answer and explanation for your client’s product costs £50 to produce, and it sells for £150. She’s sold 10 units and spent £700 on her Google ads campaign.

Your client’s product costs £50 to produce, and it sells for £150. She’s sold 10 units and spent £700 on her Google ads campaign.

• [£1500 (revenue) – £1200 (cost + Google ads spend)] / £1200 (cost + Google ads spend). ✅
• [£150 (sales price) – £1500 (cost)] / £700 (Google ads spend).
• £1500 (revenue) / £1200 (cost + Google ads spend).
• [£1500 (revenue) – 10 (number of products sold)] / £1200 (cost + Google ads spend).

Correct answer

[£1500 (revenue) – £1200 (cost + Google ads spend)] / £1200 (cost + Google ads spend). ✅

Explanation

Your client’s product costs US$50 to produce, and it sells for US$150. She’s sold 10 units and spent US$700 on her Google ads campaign. You would calculate her return on investment (ROI) to help her understand the benefit by using the formula, [US$1500 (revenue) – US$1200 (cost + Google ads spend)] / US$1200 (cost + Google ads spend).

ROI is the ratio of your net profit to your costs. To calculate ROI, take the revenue that resulted from your ads, subtract your overall costs, then divide by your overall costs: ROI = (revenue – cost of goods sold) / cost of goods sold.

Given above is the answer and explanation for the question your client’s product costs £50 to produce, and it sells for £150. She’s sold 10 units and spent £700 on her Google ads campaign.

Read all the Google ads search certification answers.

Learn more about google ads search certification:  Google ads search Skillshop