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Performing Spreadsheet What-If Analysis 36<br />

FIGURE 36.7<br />

This worksheet calculates the net profit from a direct-mail promotion.<br />

ON the CD-ROM<br />

This workbook, named direct mail.xlsx, is available on the companion CD-ROM.<br />

This model uses two input cells: the number of promotional pieces mailed and the anticipated response<br />

rate. The following items appear in the Parameters area:<br />

n<br />

n<br />

n<br />

n<br />

n<br />

n<br />

n<br />

Printing costs per unit: The cost to print a single mailer. The unit cost varies with the quantity:<br />

$0.20 each for quantities less than 200,000; $0.15 each for quantities of 200,001 through<br />

300,000; and $0.10 each for quantities of more than 300,000. The following formula is used:<br />

=IF(B4

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