The profit changes when the response rate changes. When the response rate increases, the profit increases. Every 1% of increasing of the response rate makes $7800 increase in profit. The profit changes to positive when the response rate is approximately 4% - 5%.

The company’s break even is when the profit is equal to zero which brings the response rate down to 5.77%. When the response rate reaches 5.77%, the company reaches its breakeven point. If the company wants to make profit, it should have the reason rate above 5.77%. On the other hand, if the company fails to reach 5.77% of the response rate, the company might experience net lost.

With the response rate of 3%, in a short-term view, the company’s answer might be “no,” according to the data table. However, if we think in a long-term view, which requires another model to calculate a probability, the mailing might be a key for success. 

The uncertainty might not affect the model much if there is uncertainty in a variable that we know. However, if there is uncertainty in the variables, which means there are other considerable variables that will affects the model such as another overhead cost or the change of the attitude toward mailing, those variables will affect the usefulness of the model.