Fundamentals of Prospecting at Breakeven, Part 2 of 2

Breakeven with variable costs included is 60 cents/catalog cost divided by margin of 44 percent, or $1.36 rather than $1.20/book. To calculate this more conservative breakeven, take your net variable costs of fulfilling orders (variable costs less any shipping and handling revenue) as a percentage of sales and subtract that from your merchandise margin.