Babygap website is considering how to increase demand for, Ask an Expert

Management Studies

BabyGap website is considering how to increase demand for its line of infant clothes. One proposal is to buy a mailing list with 100,000 names of recent parents who have household incomes greater than $40,000 and send them each a coupon for $5 for purchase at the web site.

Gap has to pay $0.50 for each name on the list. It will also incur a mailing cost of $0.50 for every mall it sends out Gap expects the average customer responding to such a promotion win buy clothes worth $50.00 at the web site (including shipping and handling charges).

The average cost for Gap for the clothes will be $20,00. The industry average for purchases arising from such targeted mailings is roughly 6%.

Compute the contribution margin. ($)

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92785959

Have any Question?Write your Review or question?

Related Questions in Operation Management

Community general hospital policy and proceduremedication

COMMUNITY GENERAL HOSPITAL POLICY AND PROCEDURE MEDICATION ADMINISTRATION & SAFE HANDLING PURPOSE: To ensure the safe, appropriate, and accurate administration and handling of medications. POLICY: Medications are adminis ...

Fayolrsquos organizing function is demonstrated when

Fayol’s organizing function is demonstrated when management gathers and synchronizes the resources of the organization (people, capital, and physical) to complete the goals set out in the planning stage. One of the long- ...

Imagine your company is planning and strategizing for the

Imagine your company is planning and strategizing for the future and that you have been asked by the executive team to brief them on the state of the risks and opportunities in the industry. Prepare an analysis of the Ex ...

1 post an instructional strategy that you have used as an

1. Post an instructional strategy that you have used as an instructor or as a learner that led to learning procedures or principles. Discuss the efficacy of this strategy. Remember to include the vocabulary of the readin ...

Purpose to write a clear well-constructed annual

Purpose: To write a clear, well-constructed annual performance evaluation of an employee, providing enough information to determine whether your direct report should receive a raise (and how much) and what goals he shoul ...

In 2010 the us federal trade commission was involved in a

In 2010, the U.S. Federal Trade Commission was involved in a case against Coca-Cola acquiring one of its largest bottler/distributors, which also distributed Dr. Pepper, because the former was considered to control too l ...

Scenario a current board member and large donor has a son

Scenario: A current Board member and large donor has a son who has just graduated from college and is having difficulty finding a job. He asked the CEO to assist his son in securing a job at your facility. Meanwhile this ...

Analyze and explain the international marketing manager at

Analyze and Explain: The international marketing manager at the University of Colorado is convinced there is a market in Latin America for a cuddly CU Ralphie mascot plush toy. She has learned about your experience in th ...

Your hr manager wants to promote a high-performance culture

Your HR Manager wants to promote a high-performance culture and improve Communications with line managers in your organization. To contribute to this, he/she has given you the following task: As part of the revision of t ...

The organization of the petroleum exporting countries opec

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 13 nations, founded in 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, Venezuela). As of 2 ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert