Direct Marketing

Inputs Gross Profit Net Profit Net Profit

Number of Ads 10000 2.0% 2,500.00 50.00 2.0%
Click Rate 6.83% 2.5% 3,125.00 562.50 2.5%
3.0% 3,750.00 1,075.00 3.0%
Parameters 3.5% 4,375.00 1,587.50 3.5%
Design Fee $ 2,000.00 4.0% 5,000.00 2,100.00 4.0%
Cost Per Ad $ 2.25 4.5% 5,625.00 2,612.50 4.5%
Total Clicks 682.92682927 5.0% 6,250.00 3,125.00 5.0%
Profit Per Click $ 12.50 5.5% 6,875.00 3,637.50 5.5%
Gross Profit $ 8,536.59 6.0% 7,500.00 4,150.00 6.0%
Net Profit $ 5,000.00 6.5% 8,125.00 4,662.50 6.5%

Itbark Direct Marketing 636386387.xlsx

 10000 15000 20000 25000 30000 35000 40000
$ 50.00 $ 1,075.00 $ 2,100.00 $ 3,125.00 $ 4,150.00 $ 5,175.00 $ 6,200.00
$ 562.50 $ 1,843.75 $ 3,125.00 $ 4,406.25 $ 5,687.50 $ 6,968.75 $ 8,250.00
$ 1,075.00 $ 2,612.50 $ 4,150.00 $ 5,687.50 $ 7,225.00 $ 8,762.50 $ 10,300.00
$ 1,587.50 $ 3,381.25 $ 5,175.00 $ 6,968.75 $ 8,762.50 $ 10,556.25 $ 12,350.00
$ 2,100.00 $ 4,150.00 $ 6,200.00 $ 8,250.00 $ 10,300.00 $ 12,350.00 $ 14,400.00
$ 2,612.50 $ 4,918.75 $ 7,225.00 $ 9,531.25 $ 11,837.50 $ 14,143.75 $ 16,450.00
$ 3,125.00 $ 5,687.50 $ 8,250.00 $ 10,812.50 $ 13,375.00 $ 15,937.50 $ 18,500.00
$ 3,637.50 $ 6,456.25 $ 9,275.00 $ 12,093.75 $ 14,912.50 $ 17,731.25 $ 20,550.00
$ 4,150.00 $ 7,225.00 $ 10,300.00 $ 13,375.00 $ 16,450.00 $ 19,525.00 $ 22,600.00
$ 4,662.50 $ 7,993.75 $ 11,325.00 $ 14,656.25 $ 17,987.50 $ 21,318.75 $ 24,650.00

Itbark Direct Marketing 636386387.xlsx

Cost_Per_ ='Direct Marketing'!$B$9
Design_Fe ='Direct Marketing'!$B$8
Gross_Profi='Direct Marketing'!$B$12
Profit_Per_='Direct Marketing'!$B$11
Total_Click='Direct Marketing'!$B$10

Itbark Range Names 636386387.xlsx

 Scenario Summary
Current Values: Best Case Worst Case Most Likely
Changing Cells:
$B$4 10000 40000 10000 10000
$B$5 5.00% 6.50% 1.00% 6.83%
Result Cells:
$B$12 $ 6,250.00 $ 32,500.00 $ 1,250.00 $ 8,537.50
$B$13 $ 3,125.00 $ 24,650.00 $ (975.00) $ 5,000.75
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.

Itbark Scenario Summary 636386387.xlsx

Microsoft Excel 16.0 Answer Report
Worksheet: [Itbark_Exp19_Excel_Ch06_Cap_DirectMarketing.xlsx]Direct Marketing 2
Report Created: 10/16/2022 11:22:16 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: GRG Nonlinear
Solution Time: 0.032 Seconds.
Iterations: 3 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling
Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Forward, Require Bounds
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Value Of)

Cell Name Original Value Final Value
$B$13 Net Profit $ 3,125.00 $ 20,000.00

Variable Cells
Cell Name Original Value Final Value Integer
$B$4 Number of Ads 10000 30662.025261 Contin
$B$5 Click Rate 5.00% 7.00% Contin

Constraints
Cell Name Cell Value Formula Status Slack
$B$13 Net Profit $ 20,000.00 $B$13=20000 Binding 0
$B$4 Number of Ads 30662.0252613 $B$4<=40000 Not Binding 9337.9747387
$B$5 Click Rate 7.00% $B$5<=0.07 Binding 0

Itbark Answer Report 1 636386387.xlsx

Direct Marketing
Inputs Gross Profit Net Profit Net Profit
Number of30662.025261 2.00% $7,666 $4,286 2.00%
Click Rate 7.00% 2.50% $9,582 $5,857 2.50%
3.00% $11,498 $7,429 3.00%
Parameters 3.50% $13,415 $9,000 3.50%
Design Fee $ 2,000.00 4.00% $15,331 $10,571 4.00%
Cost Per A $ 2.25 4.50% $17,247 $12,143 4.50%
Total Clicks2146.3417683 5.00% $19,164 $13,714 5.00%
Profit Per C $ 12.50 5.50% $21,080 $15,286 5.50%
Gross Profi $ 26,829.27 6.00% $22,997 $16,857 6.00%
Net Profit $ 20,000.00 6.50% $24,913 $18,429 6.50%

Itbark Direct Marketing 2 636386387.xlsx

 10000 15000 20000 25000 30000 35000 40000
$50 $1,075 $2,100 $3,125 $4,150 $5,175 $6,200
$563 $1,844 $3,125 $4,406 $5,688 $6,969 $8,250
$1,075 $2,613 $4,150 $5,688 $7,225 $8,763 $10,300
$1,588 $3,381 $5,175 $6,969 $8,763 $10,556 $12,350
$2,100 $4,150 $6,200 $8,250 $10,300 $12,350 $14,400
$2,613 $4,919 $7,225 $9,531 $11,838 $14,144 $16,450
$3,125 $5,688 $8,250 $10,813 $13,375 $15,938 $18,500
$3,638 $6,456 $9,275 $12,094 $14,913 $17,731 $20,550
$4,150 $7,225 $10,300 $13,375 $16,450 $19,525 $22,600
$4,663 $7,994 $11,325 $14,656 $17,988 $21,319 $24,650

Itbark Direct Marketing 2 636386387.xlsx