30 Tuscan Lifestyles LTV 31 Initial Order >$50 32 33 REVENUES 34 Number of Initial Customers...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
30 Tuscan Lifestyles LTV 31 Initial Order >$50 32 33 REVENUES 34 Number of Initial Customers 35 Number Ordering Customers 36 Response Rate 37 Retention Rate 38 Number of Orders 39 Average Order Size 40 Revenues 41 42 COSTS 43 COGS (rough %) 44 COGS ($) 45 Acquisition Costs 46 Maintenance Mailing Costs 47 TOTAL COSTS 48 49 GROSS PROFIT 50 Gross Profit 51 Discount rate applied NPV 52 53 Cumulative NPV 54 55 LIFETIME VALUE (First purchase) Year 1 3296 3296 2.30% 1 3296 $95.55 58% (5 years ago) Year 2 3296 3296 727 608 ΝΑ ΝΑ 1 ΝΑ 3416 2383 1185 952 792 93.02 84.02 77.75 70.61 78.26 $314,932.80 317756.3 200219.7 92133.75 67220.72 61981.92 $0 1 3296 2825 ΝΑ 1 Year 3 1.06 3296 1633 Year 4 ΝΑ 1 58% 58% 58% 58% $182,661.02 184298.7 116127.4 53437.58 38988.02 $0 $0 $0 $0 Year 5 3296 826 ΝΑ 1 Year 6 58% 35949.51 $0 1. What is the LTV over five years for customers who initially spend less than $50? 2. What is the LTV over five years for customers who initially spend $50 or more? 3. Based on your findings, which group of customers has higher LTV? 4. Since when has the higher LTV group of customers become profitable? 5. Should you keep sending catalogs to the lower LTV group of customers? Why or why not? 6. Hand in your CLV chart for each group. 30 Tuscan Lifestyles LTV 31 Initial Order >$50 32 33 REVENUES 34 Number of Initial Customers 35 Number Ordering Customers 36 Response Rate 37 Retention Rate 38 Number of Orders 39 Average Order Size 40 Revenues 41 42 COSTS 43 COGS (rough %) 44 COGS ($) 45 Acquisition Costs 46 Maintenance Mailing Costs 47 TOTAL COSTS 48 49 GROSS PROFIT 50 Gross Profit 51 Discount rate applied NPV 52 53 Cumulative NPV 54 55 LIFETIME VALUE (First purchase) Year 1 3296 3296 2.30% 1 3296 $95.55 58% (5 years ago) Year 2 3296 3296 727 608 ΝΑ ΝΑ 1 ΝΑ 3416 2383 1185 952 792 93.02 84.02 77.75 70.61 78.26 $314,932.80 317756.3 200219.7 92133.75 67220.72 61981.92 $0 1 3296 2825 ΝΑ 1 Year 3 1.06 3296 1633 Year 4 ΝΑ 1 58% 58% 58% 58% $182,661.02 184298.7 116127.4 53437.58 38988.02 $0 $0 $0 $0 Year 5 3296 826 ΝΑ 1 Year 6 58% 35949.51 $0 1. What is the LTV over five years for customers who initially spend less than $50? 2. What is the LTV over five years for customers who initially spend $50 or more? 3. Based on your findings, which group of customers has higher LTV? 4. Since when has the higher LTV group of customers become profitable? 5. Should you keep sending catalogs to the lower LTV group of customers? Why or why not? 6. Hand in your CLV chart for each group.
Expert Answer:
Answer rating: 100% (QA)
To answer your questions lets analyze the provided data 1 What is the LTV over five years for customers who initially spend less than 50 To calculate ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
List A and List B each contains 30 numbers. Frequency distributions for each list are recorded in the histograms below. The average (arithmetic mean) of the numbers in list A is 3.7, and the average...
-
Hello, Individuals and companies need to manage and control both costs and cash flow, and the two concepts are closely related, but they are not accounted for in the same way. Explain the basic cash...
-
A researcher wanted to find out if there was difference between older movie goers and younger movie goers with respect to their estimates of a successful actors income. The researcher first...
-
On January 1, 2018, Rastall Co. signed a long-term finance lease for an office building. The terms of the lease required Rastall to pay $30,000 annually, beginning December 31, 2018, and continuing...
-
An ideal regenerative Rankine cycle contains two open reheaters as shown in the T-s diagram of Fig. 8.36. Steam with a flow rate of 20 kg/s leaves the boiler at 8 MPa and 600°C. Steam is removed...
-
A local hotel offers ballroom dancing on Friday nights. A researcher observes the customers and estimates their ages. Discuss the skewness of the distribution of ages if the mean age is 51, the...
-
Peregrine Company acquired 80 percent of Sparrow Company's common stock for \($22,000,000\) in cash; fees paid to an outside firm to estimate the earning power of Sparrow and the fair values of its...
-
Job costing, accounting for manufacturing overhead, budgeted rates. The Fasano Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing...
-
A firm's stock currently sells for $65 per share. The firm has just paid its annual dividend of $4 per share and plans to increase its dividend by 3.6 percent per year, indefinitely. The stock has...
-
Chapter 8 Interval Estimation Managerial Report 1. Use appropriate descriptive statistics to summarize each of the three variables for the 40 Gulf View condominiums. 2. Use appropriate descriptive...
-
22948483 income as follows: The estimated litigation expense of \\( \\$ 3945000 \\) will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable...
-
Calculate the depth to the Centre of pressure from the free surface. Express your answer to three significant figures. A flat circular surface is submerged in water so that its flat surface is...
-
You work in a restaurant. You have observed several of the cooks in the restaurant using drugs anc believe that they are a hazard to themselves and others. What is the MOST professional way to handle...
-
22-19 Transfer-pricing methods, goal congruence. Calgary Lumber has a raw lumber division and a fin- ished lumber division. The variable costs are as follows: Raw lumber division: $125 per 100...
-
Nopal Fabrics Trading received an order from a customer to produce 200 unit of customized corporate attire. The following information is available for JOB X70. Additional information for the cost...
-
The house Jim is buying from Scott burns to the ground prior to closing. Jim and Scott are discharged from further performance because there is no longer a house to sell. Neither party under the...
-
Contentious aspects of allowable costs during contract settlement include what two factors? Attorney fees Contractor's profit on sold equipment Idle facilities and idle capacity costs Reasonableness
-
1. As a general strategy, would you recommend that Carl take an aggressive approach to capacity expansion or more of a wait-and-see approach? 2. Should Carl go with the option for one facility that...
-
A researcher wanted to find out if there was difference between the estimates given for a female actors earnings and a male actors earnings. The researcher hypothesized that the estimates would be...
-
The table below displays Trip Advisor ratings, as of March 2017, of the Prado National Museum in Madrid and the National Museum of Anthropology in Mexico. Use the data in the table to determine...
-
The table below displays the 10 fastest growing metropolitan statistical areas in the U.S. by net change from 2000 to 2010. Use the information in the table to answer the questions shown below the...
-
Determine which of the following numbers are prime: \(\{3,27,77,131,457\}\)
-
72 Find the prime factorization of the given number.
-
345 Find the prime factorization of the given number.
Study smarter with the SolutionInn App