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Quality Sweaters direct mail model Catalog inputs Model of responses Fixed cost of printing $20,000 Response rate 8% Variable cost of printing mailing $0.25 Number of responses 8000 Decision variable Model of revenue, costs, and profit Number mailed 100000 Total Revenue $320,000 Fixed cost of printing $20,000 Order inputs Total variable cost of printing mailing $25,000 Average order $40

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