Use the LTV 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)

• 	Consumer Figures:		Business Figures:		Space Ad Figures:
  Cost to reach a prospect	$0.60		$0.70		$0.01
  Average response	1.10%		0.90%		0.51%
  Average initial order	$70.00		$80.00		$19.95
  Average COGS	50.00%		50.00%		70.00%
  Initial Fulfillment Cost	$7		$8		$4
  Cost to reach a customer	$0.50		$0.50		$0.50
  Number of customer mailings/year	4		4		4
  Response per mailing year one	16.00%		24.00%		8.00%
  Response per mailing year two	13.00%		16.00%		6.00%
  Response per mailing year three	11.00%		12.00%		4.00%
  Time Value of Money Discount	20.00%		20.00%		20.00%
  Average repeat order	$75.00		$150.00		$30.00
  Average repeat COGS	50.00%		50.00%		55.00%
  Repeat Order fulfillment Cost	$6		$7		$5