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Blazer Threads Inc. sells hand-knit sweaters. BT is planning to print a catalog of its products and undertake a direct mail campaign. The cost of
Blazer Threads Inc. sells hand-knit sweaters. BT is planning to print a catalog of its products and undertake a direct mail campaign. The cost of printing the brochure is $20,000 plus $0.10 a catalog. The cost of mailing each catalog is $0.15. In addition, the company will include direct reply envelopes in its mailings. If a customer places an order upon receiving the catalog, he/she will use the direct reply envelope to mail it back, and it costs BT extra $0.20 in postage for each direct mail envelope used by a respondent. If a customer does not place an order, the direct reply envelope will not be used, and no extra cost is incurred for BT. The average value of a customer order is $40, and BT's variable cost per order averages around 80% of the order's value. The company plans to mail 100,000 catalogs, and it expects the response rate (percentage of customers that mails back an order) to be at 5%. Draw an exhaustive influence chart for BT's mail campaign. Blazer Threads Inc. sells hand-knit sweaters. BT is planning to print a catalog of its products and undertake a direct mail campaign. The cost of printing the brochure is $20,000 plus $0.10 a catalog. The cost of mailing each catalog is $0.15. In addition, the company will include direct reply envelopes in its mailings. If a customer places an order upon receiving the catalog, he/she will use the direct reply envelope to mail it back, and it costs BT extra $0.20 in postage for each direct mail envelope used by a respondent. If a customer does not place an order, the direct reply envelope will not be used, and no extra cost is incurred for BT. The average value of a customer order is $40, and BT's variable cost per order averages around 80% of the order's value. The company plans to mail 100,000 catalogs, and it expects the response rate (percentage of customers that mails back an order) to be at 5%. Draw an exhaustive influence chart for BT's mail campaign
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