"Anna," said Ethan, "I think e may have a problem with the conference. Only 15 people have registered. Our marketing consultants told us to expect at least a 3% registration rate from our direct mail campaign. Based on the 5,000 conference fliers we mailed, do you think another 135 people will register in the next three weeks?" Anna and Ethan had worked together to develop a budget for the conference, as follows. They had budgeted for registration response rates of 2%, 3%, and 4%, but a response rate of 0.3% was far outside

their expectations.

Registration fee revenue Expenm Meals Conference materials Direct mail advertising Meeting morn rental Cancellation fee Guest mun-i guarantee fee Equipment rental Speaker fees: Newton Smltl'i Tawnsley Speaker travel: Newton H 4-DDEI H 200