5- Suppose the co. wanted to increase its customers monthly retention rate and decide to spend an additional 25 cents per month.

By how much eDrone increase its monthly customer retention rate so as not to reduce customer lifetime value resulting from a lower customer margin?

Drone Innovations, TMC. (DUI) is a local drone manufacturer that is planning to launch a new drone that uses solar technology which will allow the drone to fly 100 times farther and 100 times longer than any existing drone on the market. Cost research and development is s250,000 and the drone market size is currently measured at 2,750,000 of which DII currently serves 4 Newspaper advertising will carry a coupon that will entitle the consumer to receive the price of each drone purchased. Research has shown that 25% of customers will redeem the coupon. The cost of the newspaper advertising (excluding coupon returns) will be $500,000. Other fixed costs will be $2 million per year with the cost to produce each drone at s23. The finding of several research studies has determined that consumers would be willing to pay $65 for each drone at which the retail selling price would be targeted. The retailer's margin is 30% and the wholesaler's margin is 20%. 1) A) What is the company's selling price of one drone to its wholesalers? What is the product's contribution margin as a percentage? B) C) What is the product's contribution per unit in dollars? Use the following guidelines for rounding of decimals (a) percentage one decimal point; (B) units upward to next full units (C) currency two decimal points. A) WThat is the compan