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Avg Room rate = $149/night Room Cost = $23.00 Fortune Small Business Magazine Circ = 1,000,000 Circ cost: $65/M: $65 x 1,0000 = $65,000 Production

Avg Room rate = $149/night

Room Cost = $23.00

Fortune Small Business Magazine

Circ = 1,000,000

Circ cost: $65/M: $65 x 1,0000 = $65,000

Production cost for ad = $25,000

1. What is the breakeven*?

A) room sales (units)

B) response rate

2. What is Cost per Response?

3. What would the profit or loss be?

4. Would you recommend this to your boss (B2B Resp Rate .79%)?

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