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Eastern Motors Auto Dealer wanted to estimate the average CLV of a customer purchasing a new vehicle over a 5-year time horizon. The average vehicle

Eastern Motors Auto Dealer wanted to estimate the average CLV of a customer purchasing a new vehicle over a 5-year time horizon. The average vehicle sells for $26,400 and has a 12% margin. According to historical averages, 79% of people who buy a new vehicle at Eastern will return for service 7 times in the next 5 years. While it varies considerably, Eastern gets a margin of approximately $86 per service visit after accounting for parts and direct labor costs.

What is the average dollar margin for each new vehicle sold, not including service?

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