Question
Customer Lifetime Value Price Margin per Customer Discount Rate Customer Retention Rate Customer Lifetime Value $19.99 $0.19 1% 99.00% $10.28 History Month 0 Month 1
Customer Lifetime Value
|
| Price | Margin per Customer | Discount Rate | Customer Retention Rate | Customer Lifetime Value |
|---|---|---|---|---|---|
| $19.99 | $0.19 | 1% | 99.00% | $10.28 |
| History | Month 0 | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 |
|---|---|---|---|---|---|---|---|---|
| Margin per Customer | -$1.24 | $0.19 | ||||||
| Discount Rate | 1% | 1% | ||||||
| Customer Retention Rate | 99.00% | 99.00% | ||||||
| Customer Lifetime Value | -$67.65 | $10.28 |
a) What is the CLV number at the end of month 0? What is the CLV number at the end of month 1? Why is one negative and the other positive?
Month 0 Month 1 Units Sold 1,708,723 1,976,812 Price per Unit $19.99 $19.99 Revenue $34, 157,373 $39,516,472 Variable Costs $7,689,254 $8,895,654 Fixed Costs $30,000,000 $30,000,000 COGS $37,689,254 $38,895,654 Free Week Trial Promotion $0 $0 New Stories Program $0 $0 Continuous Improvement Initiative $0 $0 "Geek Love" Initiative $0 $0 Loyalty Rewards $0 $0 Store Distribution $0 $0 Adopt a Role Player Program $0 $0 Total Investment Spending $0 $0 Profit $3,531,881 $620,818 Taxes $0 $0 Profit (after tax) -$3,531,881 $620,818 Cumulative Profit -$3,531,881 -$2,911,063 Month 0 Month 1 Units Sold 1,708,723 1,976,812 Price per Unit $19.99 $19.99 Revenue $34, 157,373 $39,516,472 Variable Costs $7,689,254 $8,895,654 Fixed Costs $30,000,000 $30,000,000 COGS $37,689,254 $38,895,654 Free Week Trial Promotion $0 $0 New Stories Program $0 $0 Continuous Improvement Initiative $0 $0 "Geek Love" Initiative $0 $0 Loyalty Rewards $0 $0 Store Distribution $0 $0 Adopt a Role Player Program $0 $0 Total Investment Spending $0 $0 Profit $3,531,881 $620,818 Taxes $0 $0 Profit (after tax) -$3,531,881 $620,818 Cumulative Profit -$3,531,881 -$2,911,063Step by Step Solution
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The New Yellow Book Government Auditing Standards
Authors: Rebecca A. Meyer
1st Edition
1119784638, 978-1119784630
