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Tastykake Online Gift Box postcard mailing: Selling price = $41.50 per box with free shipping in USA Cost Of Goods Sold (COGS) = 60% of
Tastykake Online Gift Box postcard mailing: Selling price = $41.50 per box with free shipping in USA Cost Of Goods Sold (COGS) = 60% of revenue Order processing and fulfillment costs = $6.95 per order Mailing size = 17,500 pieces Printing, mailing and postage costs = $.459 each Historical response rate = 4.6% Questions: 1. At the historical response rate, what would the expected profit or loss be for the Mother's Day Promotion? 2. What is the response rate needed to breakeven? 3. What is the ROI at a 9.2% response rate
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