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For this learning activity, use the MailCampaign.xlsx file. Use the Goal-Seek tab. Perform a goal-seek analysis that shows the average order size necessary to break
For this learning activity, use the MailCampaign.xlsx file. Use the Goal-Seek tab. Perform a goal-seek analysis that shows the average order size necessary to break even (i.e., have a net income of zero).
Mailing Campaign Analysis | ||||
Costs | Mailing inputs | |||
Printing | 24,000.00 | Fixed cost of printing | 10,000 | |
Mailing | 14,000.00 | Variable cost for printing | 0.10 | |
Total Costs | 38,000.00 | Variable cost for mailing | 0.28 | |
Number of catalogs mailed | 50,000 | |||
Net order revenue | ||||
Revenues | 220,000.00 | Responses and orders | ||
Variable costs | 176,000.00 | Response rate | 0.08 | |
Net revenue | 44,000.00 | Average order | 55 | |
Order processing costs (%) | 15% | |||
Net income | 6,000.00 | Cost of goods sold (%) | 65% |
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