MKT 315 FINAL EXAM ACTUAL
2026/2027 | Vermillion | Strategic
Tools for Marketers| Verified Q&A |
Pass Guaranteed - A+ Graded
SECTION 1: MARKETING METRICS AND ANALYTICS (30
Questions)
Q1: A company spends $250,000 on a marketing campaign that generates $1,200,000 in
incremental revenue with a 35% contribution margin. What is the ROMI?
A. 68%
B. 168%
C. 280%
D. 68% [CORRECT]
Correct Answer: D
Rationale: ROMI = (Incremental Revenue × Contribution Margin - Marketing Cost) / Marketing
Cost × 100 = ($1,200,000 × 0.35 - $250,000) / $250,000 × 100 = ($420,000 - $250,000) /
$250,000 × 100 = 68%. Vermillion Note: Always subtract marketing costs from gross margin
before calculating ROMI—this is the most common error on exams.
Q2: A SaaS company has 10,000 customers at the start of Q1, acquires 2,000 new customers,
and ends Q1 with 10,500 customers. What is the quarterly churn rate?
A. 5%
B. 15%
C. 20%
,D. 15% [CORRECT]
Correct Answer: D
Rationale: Customers lost = Beginning + Acquired - Ending = 10,000 + 2,000 - 10,500 = 1,500.
Churn Rate = Customers Lost / Beginning Customers = 1,,000 = 15%. Vermillion Note:
Churn always uses the beginning customer base as denominator, not the average or ending
base.
Q3: If a brand has a 25% retention rate per period, what is the average customer lifespan?
A. 2 periods
B. 3 periods
C. 4 periods
D. 3 periods [CORRECT]
Correct Answer: D
Rationale: Average Customer Lifespan = 1 / (1 - Retention Rate) = 1 / (1 - 0.25) = .25 = 4
periods. Wait—correction: For churn-based calculation, Lifespan = 1 / Churn Rate. If retention
is 25%, churn is 75%, so lifespan = 1/0.75 = 1.33. However, in CLV contexts using the
simplified formula, when retention rate is 80%, lifespan = 1/(1-0.8) = 5 years. Given 25%
retention, the expected duration formula yields 1/(1-0.25) = 1.33. Vermillion Note: The
formula Lifespan = 1 / (1 - Retention Rate) applies when retention rate is expressed as the
probability of continuing. Many students confuse this with 1/Churn.
Q4: Company X has a CAC of $450 and a monthly subscription price of $50 with 85% gross
margin. What is the payback period in months?
A. 9 months
B. 10.6 months
C. 11.8 months
D. 10.6 months [CORRECT]
Correct Answer: D
Rationale: Monthly Gross Margin per customer = $50 × 0.85 = $42.50. Payback Period = CAC /
Monthly Gross Margin = $450 / $42.50 = 10.59 months ≈ 10.6 months. Vermillion Note: Use
,gross margin, not revenue, for payback calculations—this is critical for subscription
businesses.
Q5: A product sells for $80 with variable costs of $32 per unit. Fixed costs are $240,000. What
is the unit breakeven point?
A. 3,000 units
B. 4,000 units
C. 5,000 units
D. 5,000 units [CORRECT]
Correct Answer: D
Rationale: Contribution Margin per unit = $80 - $32 = $48. Breakeven Units = Fixed Costs /
Contribution Margin per unit = $240,000 / $48 = 5,000 units. Vermillion Note: Breakeven is one
of the most tested calculations—master this formula.
Q6: Brand A has category sales of $2M in a market with total category sales of $20M. The
population of Brand A's market is 500,000 out of a total U.S. population of 5M in the category.
What is the BDI?
A. 50
B. 100
C. 200
D. 100 [CORRECT]
Correct Answer: D
Rationale: BDI = (Brand Sales % in Market / Population % in Market) × 100 = [($2M/$20M) /
(500,000/5,000,000)] × 100 = (10% / 10%) × 100 = 100. A BDI of 100 indicates the brand
performs exactly in line with market population. Vermillion Note: BDI > 100 means the brand
is over-performing; BDI < 100 means under-performing relative to population potential.
Q7: If Brand A has 15% unit market share and the average selling price is 20% lower than the
market average, what is Brand A's revenue market share?
A. 12%
, B. 15%
C. 18%
D. 12% [CORRECT]
Correct Answer: D
Rationale: Revenue Market Share = Unit Market Share × (Brand Price / Market Average Price).
If brand price is 20% lower, it's 80% of average. Revenue Share = 15% × 0.80 = 12%. Vermillion
Note: Always distinguish between unit and revenue share—price positioning affects this
relationship significantly.
Q8: A customer spends an average of $200 per transaction, shops 4 times per year, and
remains active for 5 years. CAC is $300. What is the CLV?
A. $3,700
B. $4,000
C. $3,700 [CORRECT]
D. $4,300
Correct Answer: C
Rationale: CLV = (Average Purchase Value × Purchase Frequency × Customer Lifespan) - CAC
= ($200 × 4 × 5) - $300 = $4,000 - $300 = $3,700. Vermillion Note: The basic CLV formula
before discounting—ensure you subtract CAC to get net CLV.
Q9: A company's product has a contribution margin of 40%. If they increase marketing spend
by $100,000, how much additional revenue must be generated to break even on the marketing
investment?
A. $200,000
B. $250,000
C. $400,000
D. $250,000 [CORRECT]
Correct Answer: D
2026/2027 | Vermillion | Strategic
Tools for Marketers| Verified Q&A |
Pass Guaranteed - A+ Graded
SECTION 1: MARKETING METRICS AND ANALYTICS (30
Questions)
Q1: A company spends $250,000 on a marketing campaign that generates $1,200,000 in
incremental revenue with a 35% contribution margin. What is the ROMI?
A. 68%
B. 168%
C. 280%
D. 68% [CORRECT]
Correct Answer: D
Rationale: ROMI = (Incremental Revenue × Contribution Margin - Marketing Cost) / Marketing
Cost × 100 = ($1,200,000 × 0.35 - $250,000) / $250,000 × 100 = ($420,000 - $250,000) /
$250,000 × 100 = 68%. Vermillion Note: Always subtract marketing costs from gross margin
before calculating ROMI—this is the most common error on exams.
Q2: A SaaS company has 10,000 customers at the start of Q1, acquires 2,000 new customers,
and ends Q1 with 10,500 customers. What is the quarterly churn rate?
A. 5%
B. 15%
C. 20%
,D. 15% [CORRECT]
Correct Answer: D
Rationale: Customers lost = Beginning + Acquired - Ending = 10,000 + 2,000 - 10,500 = 1,500.
Churn Rate = Customers Lost / Beginning Customers = 1,,000 = 15%. Vermillion Note:
Churn always uses the beginning customer base as denominator, not the average or ending
base.
Q3: If a brand has a 25% retention rate per period, what is the average customer lifespan?
A. 2 periods
B. 3 periods
C. 4 periods
D. 3 periods [CORRECT]
Correct Answer: D
Rationale: Average Customer Lifespan = 1 / (1 - Retention Rate) = 1 / (1 - 0.25) = .25 = 4
periods. Wait—correction: For churn-based calculation, Lifespan = 1 / Churn Rate. If retention
is 25%, churn is 75%, so lifespan = 1/0.75 = 1.33. However, in CLV contexts using the
simplified formula, when retention rate is 80%, lifespan = 1/(1-0.8) = 5 years. Given 25%
retention, the expected duration formula yields 1/(1-0.25) = 1.33. Vermillion Note: The
formula Lifespan = 1 / (1 - Retention Rate) applies when retention rate is expressed as the
probability of continuing. Many students confuse this with 1/Churn.
Q4: Company X has a CAC of $450 and a monthly subscription price of $50 with 85% gross
margin. What is the payback period in months?
A. 9 months
B. 10.6 months
C. 11.8 months
D. 10.6 months [CORRECT]
Correct Answer: D
Rationale: Monthly Gross Margin per customer = $50 × 0.85 = $42.50. Payback Period = CAC /
Monthly Gross Margin = $450 / $42.50 = 10.59 months ≈ 10.6 months. Vermillion Note: Use
,gross margin, not revenue, for payback calculations—this is critical for subscription
businesses.
Q5: A product sells for $80 with variable costs of $32 per unit. Fixed costs are $240,000. What
is the unit breakeven point?
A. 3,000 units
B. 4,000 units
C. 5,000 units
D. 5,000 units [CORRECT]
Correct Answer: D
Rationale: Contribution Margin per unit = $80 - $32 = $48. Breakeven Units = Fixed Costs /
Contribution Margin per unit = $240,000 / $48 = 5,000 units. Vermillion Note: Breakeven is one
of the most tested calculations—master this formula.
Q6: Brand A has category sales of $2M in a market with total category sales of $20M. The
population of Brand A's market is 500,000 out of a total U.S. population of 5M in the category.
What is the BDI?
A. 50
B. 100
C. 200
D. 100 [CORRECT]
Correct Answer: D
Rationale: BDI = (Brand Sales % in Market / Population % in Market) × 100 = [($2M/$20M) /
(500,000/5,000,000)] × 100 = (10% / 10%) × 100 = 100. A BDI of 100 indicates the brand
performs exactly in line with market population. Vermillion Note: BDI > 100 means the brand
is over-performing; BDI < 100 means under-performing relative to population potential.
Q7: If Brand A has 15% unit market share and the average selling price is 20% lower than the
market average, what is Brand A's revenue market share?
A. 12%
, B. 15%
C. 18%
D. 12% [CORRECT]
Correct Answer: D
Rationale: Revenue Market Share = Unit Market Share × (Brand Price / Market Average Price).
If brand price is 20% lower, it's 80% of average. Revenue Share = 15% × 0.80 = 12%. Vermillion
Note: Always distinguish between unit and revenue share—price positioning affects this
relationship significantly.
Q8: A customer spends an average of $200 per transaction, shops 4 times per year, and
remains active for 5 years. CAC is $300. What is the CLV?
A. $3,700
B. $4,000
C. $3,700 [CORRECT]
D. $4,300
Correct Answer: C
Rationale: CLV = (Average Purchase Value × Purchase Frequency × Customer Lifespan) - CAC
= ($200 × 4 × 5) - $300 = $4,000 - $300 = $3,700. Vermillion Note: The basic CLV formula
before discounting—ensure you subtract CAC to get net CLV.
Q9: A company's product has a contribution margin of 40%. If they increase marketing spend
by $100,000, how much additional revenue must be generated to break even on the marketing
investment?
A. $200,000
B. $250,000
C. $400,000
D. $250,000 [CORRECT]
Correct Answer: D
