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 Mothers Day Promotion?

2. What is the response rate needed to breakeven?

3. What is the ROI at a 9.2% response rate?

SOS HELP FAST!