July 10, 2008

$4.25 For A Bottle Of Water

The tag on the bottle of water in my hotel room encouraged me to "refresh" myself.

Cost to refresh myself = $4.25 per 20oz bottle of water.

In algebra class, we learned that we can determine the cost per gallon, using the following equation:
  • $4.25 / 20 = "x" / 128 (equation corrected from earlier error!)
Solving for "x", we learn that the cost of this refreshing bottle of water is actually $27.20 per gallon.

These are the luxuries we'll forgo as we adapt to $5.00 gasoline.

Profit per New Customer

It's common for folks to measure cost per new customer. Total Marketing Cost = $10,000. Total New Customers = 130. Cost per New C...