This is a post by jonarnold85.
I'm hoping someone is able to help me fairly quickly here. This should be a very simple problem but for some reason I'm struggling with it. I'm trying to calculate what will be more profitable for my company. I'm looking for what formula I would need to run this calculation. My dilemma:
I'm purchasing data, but my request must go through with no typos. This data can be bought as a "bundle." I can either buy it individually by paying 0.35 dollars for package A and 1.75 dollars for package B for a total of 2.10 dollars. Or I can buy bundle C which has all the same data for just 1.75 dollars. While C sounds like the obvious option, C has limitations. When I buy packages A and B I can run package A first before ever paying for B. If the data in package A suggest that a typo was made, I do not have to buy package B. I can fix the typo and resubmit. Resubmitting will mean that I fix the data and buy packages A and B for a total of 2.10 dollars plus the 0.35 dollars I paid initially for package A, giving me a total of 2.45 dollars out of pocket. If I buy bundle C I pay 1.75 dollars. If a typo is made here I'm out 1.75 dollars plus I have to pay another 1.75 dollars to run it again for a total of 3.50 dollars.
I'm making the assumption that a typo will only be made once, never twice. What I want to be able to calculate is what percentage threshold of making a typo would justify purchasing the first option for 2.10 dollars vs the second option for 1.75 dollars. I can run a report to see what percentage of orders are submitted with a typo. I want to use this percentage to determine which one is more cost effective.
If this all sounds like gibberish please let me know, because it certainly felt like I was typing gibberish