In 2005, Jeff Bezos, Amazon's CEO, introduced the company's Amazon Prime membership service. For a $79 annual fee, a customer receives "free" (prepays might be more accurate) shipping on every single order the customer places during the year.Bezos acknowledged the Prime service would be "expensive for the company in the short term" but "more convenient for customers." Before introducing this program, you can be sure that the managerial accounting staff at Amazon went through a lot of differential analysis.

How would I show an example of a differential analysis for adopting the "Amazon Prime" model?