Eastern Motors Auto Dealership wanted to estimate the average CLV over a 5 year time horizon of a customer who purchases a new vehicle. The average vehicle sells for $24,200 and has a margin of 7%. Based on historical averages, 76% of people buying a new vehicle at Eastern will return for service 10 times over the next 5 years. Though it varies considerably, Eastern generates approximately $122 in margin on each service visit after accounting for parts and direct labor costs. What is the total estimated CLV over a 5 year time horizon for someone who purchases a new vehicle at Eastern Motors?

CALCULATED VARIABLES: clv = $927 service = $1,220 margin = $1,694