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Thimble Thread is planning to print a catalog of its products and undertake a direct mail campaign. The cost of printing the brochure is $20,000

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Thimble Thread 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 it mailings. If a customer places an order upon receiving the catalog, he/she will use the directi reply envelope to mail it back. It costs the company an 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 the company. The average value of a customer order is $40, and the company'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%. Thimble Thread wants to maximize its profit. Draw an influence diagram to help Thimble Thread begin to analyze the situation. Helpful hint: What is the outcome variable? Decompose the outcome variable into the independent variables that determine it. Repeat the decomposition for each variable in turn until no variable is left. Thimble Thread 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 it mailings. If a customer places an order upon receiving the catalog, he/she will use the directi reply envelope to mail it back. It costs the company an 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 the company. The average value of a customer order is $40, and the company'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%. Thimble Thread wants to maximize its profit. Draw an influence diagram to help Thimble Thread begin to analyze the situation. Helpful hint: What is the outcome variable? Decompose the outcome variable into the independent variables that determine it. Repeat the decomposition for each variable in turn until no variable is left

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