Economics


  

BREAKEVEN EXERCISE:

Your current format yields a 10% response rate at a promotional cost of $1.25 per piece in the mail. The profit prior to promotional cost per order is $25. 

There is a new format to test at $2.00 per piece. 

What is the Breakeven Response Rate for the Test?

What is the Breakeven Response Rate for the Control?

What response do you need to breakeven with the new format?

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