Calculate Profitability and Break-Even for Lyft Partnership Campaign

##### Scenario Assess profitability of launching a new credit card and potential partnership campaign with Lyft. ##### Question With 500,000 active cards, $2 monthly swipe revenue per card, a $79 annual membership fee, $15 monthly interest revenue per card, and a $5 monthly fraud-prevention cost per card, what is the annual profit? If we run a Lyft co-marketing campaign costing $25 million per year, how many incremental cardholders are required to at least break even on that campaign? Based on your calculations, would you recommend partnering with Lyft? Explain your reasoning. ##### Hints Translate every figure to annual dollars, build a per-card contribution margin, compute break-even incremental volume, then weigh strategic pros/cons.