What method should be used to determine the expense per sale from a promotional strategy?

The appropriate method for determining the expense per sale from a promotional strategy is a Cost-Benefit Analysis. This approach involves evaluating the total costs associated with the promotional campaign against the expected benefits, such as the revenue generated from the sales that result from that campaign. By analyzing the costs incurred, such as advertising, promotional materials, and any special discounts given, and comparing them to the sales revenue attributed to the promotion, you can effectively calculate the expense per sale.

This method is comprehensive, as it not only encompasses direct costs but also helps in understanding the overall return on investment (ROI) of the promotional strategy. By establishing a clear relationship between the costs and the sales achieved, a Cost-Benefit Analysis provides valuable insights into the financial effectiveness of the promotional efforts and aids in future decision-making regarding similar strategies.