2. (5 points) A catalog retailer is preparing to release a new catalog. They initially tested the response to the catalog in a subset of their customers. In the initial test, they reached out to 30,000 customers and sent them a copy of the catalog, which costs $0.55. 980 customers made a purchase, spending an average of $75. The retailers margin is 40% (i.e., variable costs are 60%).

A. What was the gross profit in dollars of this test mailing?

B. What was the gross profit as a percent of gross sales?

C. What was the return on marketing expenditures (gross profit as a function of marketing costs)?

D. What was the breakeven for this campaign?

E. The marketer now engages in RFM analysis. They identify that RFM cell 452 had a response rate of 3.20%. What is the breakeven index for that group?

PLEASE ANSWER LETTER E ONLY!!!!