Strategy-Hurdling to Profitability (1,147 words)

Let's assume your catalog cost in the mail is $.8222 and your gross margin is 50 percent, giving you a break-even point of $1.644 per catalog mailed ($.8222 divided by .50).

Assuming the catalog includes 24 pages, your break-even point is $.0685 per page per catalog mailed. Please keep in mind that this example represents a simplified version of the calculation. Customer returns and direct order processing costs should also be included.