Question: You sent out a test mailing which generates 10,000 orders. The promotion cost is $55,000. The selling price of the Whatchamacallit was $50 with a

You sent out a test mailing which generates 10,000 orders. The promotion cost is $55,000. The selling price of the Whatchamacallit was $50 with a variable cost of $22.50, thus giving a contribution or unit margin of $27.50. You were given an advertising allowable of $6 per order. Calculate the following:

CPO = Promotion cost Responses or Units sold

What is the Cost per Order (CPO) for the Whatchamacallit (to 2-decimal place - $00.00)? [Do not include $ or % signs in the answer]

Did you meet your advertising allowable of $6 per order?

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