Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume you are starting an online subscription based business. Answer all three questions. a. What does an annual churn rate of 8% mean and why

Assume you are starting an online subscription based business. Answer all three questions. a. What does an annual "churn" rate of 8% mean and why is it important to you? (1 point) b. What is a "customer acquisition cost" (CAC) and how might that number impact your profitability (be specific)? (1 point) c. Assume your CAC is $10 and the average price of your products is only $5. Under what circumstances would this be a financially viable scenario? (1 point)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

a An annual churn rate of 8 refers to the percentage of subscribers or customers who cancel their su... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

12th edition

978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707

More Books

Students also viewed these Accounting questions