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The cost per page for the 48-page book is $8,604. The cost per page on the 56-page catalog is $7,786 or about 10 percent less. The cost per page for those additional eight pages is only $2,875 per page!
Assuming a gross margin of 55 percent and a return rate of 6 percent, the break-even point for the additional eight pages is only $5,867 per page. This compares with a per-page breakeven of $17,559 for the base 48. In this case, adding pages makes economic sense … period.
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