istify methods? If so, which ones, and how would they work? Use the following da
ID: 2516188 • Letter: I
Question
istify methods? If so, which ones, and how would they work? Use the following data to calculate the contribu- tion margin for a direct e-mail campaign that was sent to a firm's customers who had purchased a product within the previous 3 months. Evaluate en campaign product u firm's adirect calculate Total e-mails sert-$50,000 Database costs per e m E-mail ad design coo-5203 Cost of microsite -$:8 Number oi responses-6,203 Revenue-$416,728 Cost of goods sold-72% ntl 22rs list cial ay- * Processing costs per order-$6.52 8. BMG Music has decided to run a direct TV campaign on a special anniversary album that sells for $35.00 plus $7.00 for shipping and handling. Using the data provided, calculate the contribution margin of the campaign. Evaluate the campaign. e TV ad design-$72,000 · TV, ad time--$600,000 . Number of responses-72,651 . Commercial call center to handle incoming calls- or uit $2.35 per order Revenue per response (including the shipping and handling) $42.00 Cost ofgoods sold-55% Process shipping and handling costs per order-$7.53 . e. is .Explanation / Answer
8)
**TV ad design and TV ad time is afixed cost
Fixed cost :72000+600000=672000
The campaign is Not worthful since it will result in net operating loss of [655312.02-672000 fixed cost ] = $ -16687.98
Revenue [72651 * 42] 3051342 less:variable cost cost of goods sold [3051342*.55] (1678238.1) shipping and handling cost [7.53*72651] (547062.03) Handling calls [2.35*72651] (170729.85) Contribution margin 655,312.02Related Questions
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