6. Clarissa's Calligraphy Co. sells luxury refillable pencils, pens, and gift sets that made for memorable but functional corporate gifts. The pens and pencils were offered in a variety of metallic colours, could be engraved with custom messages, and were available for purchase online and at her store in London, Ontario. The gift sets contained one pencil and one pen. Until last year, Clarissa had enjoyed steady sales through word-of-mouth referrals and sending marketing brochures to purchasing departments at local companies. Sales had remained steady at around 500 items per month. Two months ago, a recipient of one of her gift pens had written a gushing letter to The London Free Press, a local newspaper. As a result, her sales had doubled. She estimated that 20% of her sales came from pencils, 50% from pens, and the remaining 30% from gift sets. Clarissa wondered if it would be worth her while to spent $10,000 on a 1/4-page colour print ad prior to important gifting holidays like Father's Day or Christmas, and how many items she would need to sell in total to break even on her investment. She took her prized Palomino Blackwing out of its case and started listing some data: Item Pencil Pens Gift Set Variable Cost $11.00 $12.50 + $1.25 per set for engraving +$2.00 per gift set box Selling Price $23.95 $26.95 $47.95

. Clarissa's Calligraphy Co. sells luxury refillable pencils, pens, and gift sets that made for memorable but functional corporate gifts. The pens and pencils were offered in a variety of metallic colours, could be engraved with custom messages, and were available for purchase online and at her store in London, Ontario. The gift sets contained one pencil and one pen. Until last year, Clarissa had enjoyed steady sales through word-of-mouth referrals and sending marketing brochures to purchasing departments at local companies. Sales had remained steady at around 500 items per month. Two months ago, a recipient of one her gift pens had written a gushing letter to The London Free Press, a local newspaper. As a result, her sales had doubled. She estimated that 20% of her sales came from pencils, 50% from pens, and the remaining 30% from gift sets. Clarissa wondered if it would be worth her while to spent $10,000 on a 1/4-page colour print ad prior to important gifting holidays like Father's Day or Christmas, and how many items she would need to sell in total to break even on her investment. She took her prized Palomino Blackwing out of its case and started listing some data