Question Two - Use the Business Figures Case Study numbers (in the Word doc) and determine from an overall profitability standpoint, which is better:

• The starting numbers in the case
• OR
• An offer of 2 Marion Berry pies for $99.00 with the following changes
• 0.85% Average Response, 50% COGS, $8.00 Fulfillment, and Response per Year of 23%, 15%, and 11% (No other changes)

OR

• An offer of 2 Marion Berry pies for $90.00 with the following changes
• 0.95% Average Response, 55% COGS, $8.00 Fulfillment, and Response per Year of 25%, 17%, and 13% (No other changes)

LTV Case Study Business Figures: Cost to reach a prospect $0.70 Average response 0.90% Average initial order $80.00 Average COGS 50.00% Initial Fulfillment Cost $8 Cost to reach a customer $0.50 Number of customer mailings/year 4 Response per mailing year one 24.00% Response per mailing year two 16.00% Response per mailing year three 12.00% Time Value of Money Discount 20.00% Average repeat order $150.00 Average repeat COGS 50.00% Repeat Order fulfillment Cost $7