Using the data in the decision tree, calculate the net gain for the marketing campaign - Edexcel - A-Level Business - Question 1 - 2022 - Paper 2

The initial cost of the marketing campaign is 20% of the £50,000 total:

egin{align*} ext{Initial Cost} &= 0.4 imes £50,000 \ &= £20,000 \end{align*}

The net gain can be calculated by subtracting the initial cost from the expected revenue:

egin{align*} ext{Net Gain} &= ext{Expected Revenue} - ext{Initial Cost} \ &= £1,800,000 - £20,000 \ &= £1,780,000 \end{align*}

Therefore, the final net gain for the marketing campaign is:

egin{align*} ext{Net Gain} &= £1,780,000 \ &= ext{or} \$1.78 ext{ million} \end{align*}