Instructions:

Read the problem below and refer to the spreadsheet provided. The spreadsheet values highlighted in yellow can

Questions:

a$.$ Janet thinks a coupon code providing a $10\%$ discount on the current order will decrease the abandon rate by $10\%.$ What would that do to her total net profit?

multiple choice $1$

$$3,250\mathrm{.}00$

$$5,000\mathrm{.}00$

$$8,050\mathrm{.}00$

$$9,000\mathrm{.}00$

$$11,275\mathrm{.}00$

b$.$ If the coupon code provided a $20\%$ discount, what is the maximum abandon rate that will still provide a better net profit than offering no discount?

multiple choice $2$

$46\%$

$52\%$

$53\%$

$65\%$

$70\%$

c$.$ Instead of offering a discount on the purchase, if Janet offered free shipping $($a $$5$ value$)$ she expects the abandon rate to be $50\%.$ How would that compare to what she considered in scenario a above?

multiple choice $3$

Offering the $10\%$ discount would be more profitable

Offering free shipping would be more profitable

Either option would provide the same total profit

d$.$ Instead of discounting the current order, Janet considers giving the customer a coupon code for $$10$ off a future purchase. She expects that only $60\%$ of those coupon codes will be redeemed and she thinks the abandon rate will drop to $45\%.$ Factoring the impact of the future discount into the current transaction, what would her net profit be$?$

multiple choice $4$

$$7,150\mathrm{.}00$

$$7,650\mathrm{.}00$

$$8,050\mathrm{.}00$

$$9,000\mathrm{.}00$

$$9,350\mathrm{.}00$

e$.$ One other idea was to offer a coupon code that applies a $$10$ discount on the current purchase if the value of the items in the cart is $$60.$ Janet doesn$$t believe this will improve the abandonment rate versus a straight email reminder but it might provide more total profit. What would her total profit be$?$

multiple choice $5$

$$2,100\mathrm{.}00$

$$8,050\mathrm{.}00$

$$12,600\mathrm{.}00$

$$15,050\mathrm{.}00$

$$16,450\mathrm{.}00$