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A regional electrical distributor currently has 1 , 0 0 0 customers who buy an average of $ 5 , 0 0 0 per year,
A regional electrical distributor currently has customers who buy an average of $ per year, generating a margin. From experience, the company knows that of its customers will not return the next year and it takes an average of $ to acquire each new customer. Given the choice of investing $ in a new customer acquisition program for additional customers or investing $ in a new retention program which would take the rate of retention from to what should the company do
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