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lesliegarza0805
lesliegarza0805
06.05.2020 • 
Business

BBBC is considering a similar mail campaign in the Midwest where it has data for 50,000 customers. Such mailings typically promote several books. The allocated cost of the mailing is $0.65/addressee (including postage) for the art book, and the book costs $15 to purchase and mail. The company allocates overhead to each book at 45% of cost. The selling price of the book is $31.95. Based on the model, which customers should Bookbinders target? How much more profit would you expect the company to generate using these models as compare to sending the mail offer to the entire list.

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