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Bruno’s Auto Repair spent $5,000 to send a direct mail coupon to every household (7,500 in all) in a two zip code area offering a free “road–readiness check-up” and 10% off any repair. By the expiration date 60 days later, 220 people had scheduled a “road-readiness check-up.” Of those, 160 had additional repair work done.

1. Calculate and label the level one and level two acquisition rates.

2. Calculate Bruno’s acquisition cost for this effort.

Financial Management, Finance

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