A local dental practice decides to run a groupon campaign


A local dental practice decides to run a Groupon campaign. The campaign offered $365 worth of dental services (such as teeth whitening) for $165. For the total campaign, 235 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Let’s assume that 24% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 45%. Finally, the bill for the average Groupon customer was $390. The dental practice negotiated a 50/50 split with Groupon.

Calculate the revenue from the Groupon campaign.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A local dental practice decides to run a groupon campaign
Reference No:- TGS01032921

Expected delivery within 24 Hours