Customers Annual orders Order size Margin Annual margin Survival rate (80%) Customer acquisition cost Catalog mailing cost Annual profit Cumulative profit Period1 $90 2 80 50% 100% Period2 2 80 80 50% Period3 $5.00 2 50% $5.00 Period4 2 80 50% $5.00

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please fill in the last two column cells (Annual Profit and Cumulative Profits for 4 years, eight cells.

 

Find the Breakeven year?

1 Customers
2 Annual orders
3 Order size
Margin
5 Annual margin
5 Survival rate (80%)
Customer acquisition cost
3 Catalog mailing cost
9 Annual profit
0 Cumulative profit
1
Period1
$90
2
80
50%
100%
Period2
2
80 80
50%
Period3
$5.00
2
50%
$5.00
Period4
2
80
50%
$5.00
Transcribed Image Text:1 Customers 2 Annual orders 3 Order size Margin 5 Annual margin 5 Survival rate (80%) Customer acquisition cost 3 Catalog mailing cost 9 Annual profit 0 Cumulative profit 1 Period1 $90 2 80 50% 100% Period2 2 80 80 50% Period3 $5.00 2 50% $5.00 Period4 2 80 50% $5.00
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