"MARKETING SHAREWARE, NET YIELD, CATALOGS, CARD DECKS. Definitions of variables for NETYIELD calculation. Y is estimate of catalog yield. Usually about 2% or .02 as a decimal. O is the average number of items ordered in each order. Depends on a lot of factors. Usually from 1 to 3. T isthe total number of catalogs that will be mailed. S is a measure of size for theentire catalog (product pages only) or for a deck ( number of add cards). Be consistent in your unit or measure with variable A. A is the size of your addin the same unit of measure as used for S. G is the gross price (including S&H)you will receive for your product. U is the unit cost of producing and shipping an item including labor, postage, materials, etc. F is a fudge factor. Your estimates may be too optimistic. Use this factor to introduce some realism.A value of 1 assumes no inflation from optimism. Typically use 0.5. *** Answers to Problems *** (c) PCSCC, Inc., 1993 (a) Set A=1/4 (=.25 or a quarter page), C=1,400, F=0.5, G=29.95, O=2.5, S=16 (for 16 pages in catalog), T=110,000, U=12.5 and Y=2/100 (=.02, 2% = 2/100). He's going to loss money! Type any key to exit. (c) PCSCC, Inc., 1993 ||Mr. Schellmann wants to market his software package. He has the opportunity to place a quarter page add in a sixteen page catalog, unfortunately on page 10, to be sent to 110,000 potential customers for $1,400. His gross price is $29.95 and his unit cost is $12.50. (a) Is this a good move?Assume a yield of 2% (.02), a fudge factor of 0.5 because of his add's catalog location, and an average order size of 2.5. Type comma key to see answers. Type (F2) to return to application file."
