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Quality Sweater Co.
Quality Sweater Co.
a) Data Table
Inputs: Response Rate
Costs:
Printing: $ 20,000 3.0%
Variable 3.5%
Printing: $ 0.10 per catalog 4.0%
Mailing $ 0.15 per catalog 4.5%
Reply envelopes: $ 0.20 per order 5.0%
Labor & Materials: $ 32.00 per order 5.5%
Total Costs: $ 230,769 6.0%
6.5%
Catalog Ordered: 100000 7.0%
Response Rate: 5.77% dummy value 7.5%
Total Orders: 5769.23 =B13*B14 8.0%
we pick values here
Revenue:
Average Customer Order: $ 40.00
Total Revenue: $ 230,769 =B15*B19
Total Profit: $ -
Profit
$ -
Quality Sweater Co.: Respo
$12.00
$10.00
$8.00
$6.00
$4.00
$2.00
$-
3.0% 3.5% 4.0% 4.5% 5.0% 5.5%
Quality Sweater Co.: Response Rate vs Profit
$12.00
$10.00
$8.00
$6.00
$4.00
$2.00
$-
3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0%