Assuming average promotional costs

Assignment Help Basic Statistics
Reference no: EM131173713

Breakeven Analysis: (10 points) You're an expert in direct mail marketing and promotions and have been asked to consult on a project for Mom & Pop Inc. The M&P Executives (your parents) believe they have a compelling product because it has generated $60 in profit (excluding costs before promotions) per sale. They would like to expand via a direct mail campaign offer. You know on average it costs $0.15 per name in list-rental costs, plus $0.75 per name to handle all other mailing costs.

i. What is the response rate needed for MP Inc. to breakeven, assuming average promotional costs?

ii. After the campaign has been launched response rates are 7%, and profit (excluding promotional costs) is at $60 per response. But you know that promotional costs will be increasing to $1.50 per name. What is the increased response rate MP needs to maintain current profit levels, yet still cover the increased costs?

Reference no: EM131173713

Questions Cloud

Kind of chi-square test : When considering the drug users who actually entered a treatment program, 67 were single; 66 were married or had a partner; and 61 were divorced, widowed, or separated. What kind of chi-square test should Corsi use to analyze the data?
Explains how your company treats contracts : Explain the types and elements of contracts that are applicable to health care providers. Please include speaker notes and 1 reference.
Compute the test statistic : Assuming that the success rate of each raider at each trial is independent of all other attempts, and that the information presented can be regarded as based on two independent random samples of the two raiders' overall performance, can you say wh..
Calculate the maximum angular deflection : A hollow steel cylinder is to be used as a torque-sensing device. The maximum torque that will be applied is 30 N-m. If the dimensions of the cylinder are L = 18 cm, ri = 2.6 cm, and r0 = 2.8 cm, calculate the maximum angular deflection that will b..
Assuming average promotional costs : i. What is the response rate needed for MP Inc. to breakeven, assuming average promotional costs? ii. After the campaign has been launched response rates are 7%, and profit (excluding promotional costs) is at $60 per response. But you know that pr..
What is the purpose of the lower-of-cost-or-market method : What is the purpose of the lower-of-cost-or-market method? What is meant by "market"? ( Hint: Discuss the ceiling and floor constraints.)
Web usage snapshot : A U.S. Web Usage Snapshot indicated a monthly average of 36 Internet visits per user from home. A random sample of 24 Internet users yielded a sample mean of 42.1 visits with a standard deviation of 5.3. At the 0.01 level of significance, can it b..
What information is pertinent to your client case : What information is pertinent to your client's case? How would you assess your client's risk? What would be an exposure pathway for your client?
What is the probability that he will not get married : A palmist told x that he has a 10 to 3 chance of getting married this year. What is the probability that he will not get married this year?

Reviews

Write a Review

Basic Statistics Questions & Answers

  Find probability that mean weight of loads is less in tons

Find the probability that the mean weight of those loads is less than 44.24 tons. Assume that the variable si normally distributed.

  Arm length resulting in a challenging control problem

The Manutec robot has large inertia and arm length resulting in a challenging control problem, as shown in Figure AP10.8 (a). The block diagram model of the system is shown in Figure AP10.8 (b).The plant dynamics are represented by

  If the number of people that voted for the candidate in the

suppose that in elections a candidate says that hell get 60 of the votes in the election. the total population is 300

  Probability-person served in less than minutes for six days

Exponential distribution with a mean of 4 minutes. What is the probability that a person is served in less than 3 minutes on at least 4 of the next 6 days?

  Among drivers who drive daily about 40 have gotten a

among drivers who drive daily about 40 have gotten a speeding tickets at one point or another. there is a statistics

  Find the sample size suggested by statement of voters

More than 5 percentage points in either direction from what would have been obtained by interviewing all voters in the United States. Find the sample size suggested by this statement.

  Was this a one tail or two tail significance tests

Was this a one tail or two tail significance tests? Explain. To what extent are the pre and post test means scores statistically significant

  Information about critical z value

Use formula z=(mean of values in sample - mu subscript mean of values in sample) divided by (lower case sigma divided by sqrt number of values in sample)

  Suppose that certain electronic components have lifetimes

suppose that certain electronic components have lifetimes that are exponentially distributed fttau 1tauexp-ttaut gt 0.

  1 a random sample is collected of size n from a population

1. a random sample is collected of size n from a population with standard deviation and with the data collected a 95

  Discuss the data that the graph is used to visually

discuss the data that the graph is used to visually represent. speculate on why the editor chose the graph as opposed

  Develop a linear regression model

Carpet City wants to develops a means to forecast it carpet sale. The store manager believes that the store's sale are directly related to the number of new housing starts in town.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd