The Quality Sweater Company sells hand-knitted sweaters. The company is planning to print a catalog of its products and undertake a direct mail campaign. The cost of printing the catalogs is $20,000 plus $0.10 per catalog. The cost of mailing each catalog (including postage and order forms) is $0.15. In addition, the company includes reply envelopes and incurs a $0.20 cost for each reply envelope used by a customer. The average customer order size is $40, and the company's labor and material cost per order is $32. The company plans to mail 100,000 catalogs. It wants to develop a spreadsheet model to answer the following questions: Modeling Assignment 3

Is the relationship between response rate and profit positive or negative? Is it linear or exponential?