| Customer Sample |
1000 |
1000 |
1000 |
1000 |
| Discount Offer |
5% |
10% |
15% |
20% |
| Response Rate |
2% |
4% |
6% |
8% |
| Responders |
20 |
40 |
60 |
80 |
| Average Price |
$80 |
$80 |
$80 |
$80 |
| Totals Sales |
$1,600 |
$3,200 |
$4,800 |
$6,400 |
| Gross Margin |
30% |
30% |
30% |
30% |
| Gross Profit |
$480 |
$960 |
$1,440 |
$1,920 |
| Discount Cost |
$80 |
$320 |
$720 |
$1,280 |
Net
Profit Before
Media Expense |
$400 |
$640 |
$720 |
$640 |
|