Question

Segment 1 220,000 25% Segment Size Segment Adoption Rate % Purchase Behaviour (5) Profit Margin % Fixed Marketing Costs ($) Segment 2 Segment 3 125,000 135,000 20% 40% 500 200 15% 25% 200,000 100,000 250 15% 250,000 Calculate the profitability of segment 1, 2, & 3 Segment Profitability = (Segment Size X Segment Adoption Percentage X Purchase Behaviour X Profit Margin %) - Fixed Costs . Segment 1 Profitability Choose Segment 3 Profitability Choose.. . Segment 2 Profitability Choose

Answer 1

To calculate the profitability of each segment, use the formula: Segment Profitability = (Segment Size X Segment Adoption Rate X Purchase Behaviour X Profit Margin %) - Fixed Costs.

Step-by-step explanation:

To calculate the profitability for each segment, we can use the formula:

Segment Profitability = (Segment Size X Segment Adoption Rate X Purchase Behaviour X Profit Margin %) - Fixed Marketing Costs

Using this formula:

• Segment 1 Profitability = (220,000 X 25% X 5 X 15%) - 200,000
• Segment 2 Profitability = (125,000 X 20% X 250 X 15%) - 100,000
• Segment 3 Profitability = (135,000 X 40% X 200 X 25%) - 250,000

Calculating these values, we can find the profitability of each segment.