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Break-even response is calculated by using the following formula: Promotional Cost/Profit prior to promotional cost or you can state the formula this way: B/E Resp.

Break-even response is calculated by using the following formula: Promotional Cost/Profit prior to promotional cost or you can state the formula this way: B/E Resp. Rate = PC/PPP (refer to PPT on Breakeven). So, given the following: The average profit per order before promotional costs is $65 Testing in Facebook is $700 per thousand (determine what is the cost per name) What is the minimum response rate you must achieve on the test in order to break-even and not lose any money? Do you have enough information to make a decision?

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