Ex. 2.3 - Breakeven Analysis .xlsx - A 1 2 3 B C D E F...

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Unformatted text preview: A 1 2 3 B C D E F Quality Sweaters direct mail model 4 5 Catalog inputs Fixed cost of printing Variable cost of printing mailing $20,000 $0.25 6 7 8 Decision variable Number mailed 100000 9 10 Order inputs 11 Average order 12 Variable cost per order 13 $40 $32.20 Model of responses Response rate Number of responses Model of revenue, costs, and profit Total Revenue Fixed cost of printing Total variable cost of printing mailing Total variable cost of orders Total cost Profit 5.76923% 5769.23076923077 $230,769 $20,000 $25,000 $185,769 $230,769 $0 G Range names used Average_order Fixed_cost_of_printing Number_mailed Number_of_responses Profit Response_rate Total_cost Total_Revenue Variable_cost_of_printing_mailing Variable_cost_per_order H I =Model!$B$11 =Model!$B$4 =Model!$B$8 =Model!$E$5 =Model!$E$13 =Model!$E$4 =Model!$E$12 =Model!$E$8 =Model!$B$5 =Model!$B$12 This isis admittedly admittedly aa lo lo This especially for for such such aa ss especially (1) they are easy to ge (1) they are easy to ge Create from from Selection Selection Create they make makethe the formul formu they much easier easier to to read. read. much B5: Includes $0.10 for printing and $0.15 for mailing each catalog B12: Includes 80% of the average $40 order size, plus $0.20 per return envelope E4: Trial value, will do sensitivity analysis on ...
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