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At Dive Shop Inc, regular customers place about 4.6 orders per year. These orders average $96 in retail value, and contribution margin percent is
At Dive Shop Inc, regular customers place about 4.6 orders per year. These orders average $96 in retail value, and contribution margin percent is typically 45%. Acquiring a new customer costs Dive Shop about $136, and Dive Shop also spends $41 per customer per year on contests, deals, and communications to keep them coming back. Dive Shop's retention rate is 81%, and the corporate discount rate is 12%. Calculate the net present value of 1 regular customer at Dive Shop. Rounding: penny. Remember, the answer may be negative. Vour Ancor
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