Breakeven Analysis Finished_A1

Breakeven Analysis Finished_A1 - $40 Total variable cost of...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Great Threads direct mail model Catalog inputs Model of responses Fixed cost of printing $20,000 Response rate 5.77% Variable cost of printing mailing $0.25 Number of responses 5769.23 Decision variable Model of revenue, costs, and profit Number mailed 100000 Total Revenue $230,769 Fixed cost of printing $20,000 Order inputs Total variable cost of printing mailing $25,000 Average order
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $40 Total variable cost of orders $185,769 Variable cost per order $32.20 Total cost $230,769 Profit $0 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: Includes $0.10 for printing and $0.15 for mailing each catalog B5: Includes 80% of the average $40 order size, plus $0.20 per return envelope B12:...
View Full Document

Page1 / 4

Breakeven Analysis Finished_A1 - $40 Total variable cost of...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online