Direct Marketing Analysis
Promotion Date August 12, 2008
Gross Margin per Unit
Selling Price Add: Handling Charge Total Revenue per Unit Cost of Merchandise Shipping or Delivery Order Processing Cost of Returns Bad Debt Other (Guarantee Card) Total Cost per Unit Gross Margin per Unit $50.00 3.00 $53.00 $16.50 2.00 0.65 1.00 0.55 0.06 $20.76 $32.24 Circulars Letters Inserts Lift Pieces Envelopes Order Forms List Rental Assembly Addressing Postage Other
Direct Mail Cost per Unit
$0.15 0.15 0.14 0.06 0.10 0.05 0.20 0.15 0.05 0.14 0.00 $1.19
Direct Mail Cost per Unit
Net Profit and Breakeven Point
Units Mailed Response Rate Unit Sales Gross Margin Mailing Costs Fixed Costs Creative Development Allocations, Other Total Fixed Costs Total Net Profit Breakeven Unit Sales Breakeven Unit Mailing 175,000 4.500% 7,875 $253,890 $208,250 $12,000 500 $12,500 $33,140 403 8,946
Prepared by
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