Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you see this? D Question 1 10 pts Q1: Shannon's brewery currently boasts a customer base of 1.750 customers that frequent the brewhouse on

can you see this?
image text in transcribed
D Question 1 10 pts Q1: Shannon's brewery currently boasts a customer base of 1.750 customers that frequent the brewhouse on average twice per month and spend $32 per visit. Shannon's current variable cost of goods sold is 50% of sales. The customer retention rate per month is 0.8%, based on data collected from its website and an analysis of credit card receipts. Its current cost of capital for borrowing and investing is about 12% per year, or 1% per month. What is Shannon's approximate CLV for its average customer? Compute your answer to the nearest penny. Question 2 10 pts Q2: Assume that Shannon's decides to move forward with its loyalty/rewards program. Estimates for the Gost per customer are $3 per month Average customer marins, before subtracting off the cost of the loyalty/rewards program, are expected to be $36 per customer per month with a boost in retention to 62% per month. What is the resulting Clv if the annual interest rate for discounting cash flows remains the same as in 017 Compute your answer to the nearest dollar are to search o O c 4 G 6 Social

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Called To Account Financial Frauds That Shaped The Accounting Profession

Authors: Paul M. Clikeman

3rd Edition

1138327085, 9781138327085

More Books

Students also viewed these Accounting questions

Question

Graph the function. Give the domain and range. X-4 f(x) = -|3,

Answered: 1 week ago

Question

3. If possible, break the presentation into clear steps or stages.

Answered: 1 week ago