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A TV satellite provider charges $42 a month for its basic service package. Its variable costs are $4 a month per account. The company spends
A TV satellite provider charges $42 a month for its basic service package. Its variable costs are $4 a month per account. The company spends $24 a year per account on marketing with an attrition rate of 1% a month. Assuming an annual discount rate of 5%, calculate the maximum amount that this company could spend to acquire a new customer and still provide a positive expected contribution.
Please show the work as Im trying to learn the concept
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