1. At a conservative response rate, would the mailing make or lose money? 2. What would the return on the marketing investment (ROI) be under the scenario above? 3. How many lawnmowers would Tanner's have to sell to break-even on the marketing investment? 4. What would the breakeven response rate be? To answer the questions, Joe called the company accountant to do research to find out what the cost of goods sold (COGS) were for the $399 Toro lawnmower that they were promoting. The accountant told Joe that 60% of the retail selling price would be a good number to use for COGS. Joe then placed a call to Toro to see if they had done mailings before to sell lawnmowers and if they had done so, they could provide the average response rate. The Toro rep said that they had some experience with mailings, and that the average response rate that other dealers were getting was .75\%. Joe then called Brandon to get the mailing cost estimates. Brandon reported to Joe that there are 23,000 single-family homes with the 15 -mle trading area for Tanner's. Brandon estimated the cost for the list rental, printing of a self-mailer, data and mailing services and postage to be $625 per thousand, and that his company, Olley and Associates, can design, write and produce the brochure for $6,500. Armed with those facts, Joe got to work on answering the four questions his lad asked. Write the answers in the spaces below. Do your work on the next page