Breakeven Analysis - Student.xlsx - A 1 Quality Sweaters...

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Quality Sweaters direct mail model Catalog inputs Model of responses Fixed cost of printing $20,000 Response rate 6% Variable cost of printing $0.10 Number of responses 6,000 Variable cost of mailing $0.15 Order inputs Average order revenue $40 Variable cost per order $32.00 Variable mailing cost per order $0.20 Decision variable A B C D E 1 2 3 4 5 6 7 8 9 10 11 12 13
Trial value, will do sensitivity analysis on E4:
Quality Sweaters direct mail model Catalog inputs Model of responses Fixed cost of printing $20,000 Response rate 6% Variable cost of printing $0.10 Number of responses 6,000 Variable cost of mailing $0.15 Model of revenue, costs, and profit Order inputs Total Revenue $240,000 Average order revenue $40 Fixed cost of printing $20,000 Variable cost per order $32.00 Total variable cost of printing mailing $25,000 Variable mailing cost per order $0.20 Total variable cost of orders $193,200 Total cost $238,200 Decision variable Profit $1,800 A B C D E 1 2 3 4 5 6 7 8 9 10 11 12 13
Trial value, will do sensitivity analysis on E4:
Quality Sweaters direct mail model Catalog inputs

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