Calculate Modern Square Inch Analysis
It used to be very easy to calculate merchandise profitability. The metric was called demand per thousand pages circulated (DMPC). You identified an item, measured how much space it occupied in your catalog, quantified the total circulation of the catalog and calculated DMPC.
Assume that you circulated 1 million catalogs, and the item being analyzed occupied exactly one-quarter of a page. The item generated $7,500 demand. Here's how DMPC is calculated: