Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

he customers for your company purchase, on average, $ 339 per year. Your retention rate is 59 % and your firm uses a discount rate

he customers for your company purchase, on average, $ 339 per year. Your retention rate is 59 % and your firm uses a discount rate of 12 %. Acquisition costs are $ 119 . Finally, your firm incurs marketing communication/promotion costs of $ 43 per customer per year. What is the necessary margin (as a percent of sales) to breakeven? In other words, at what margin (as a percent of sales) is CLV = 0? Record your answer as a percentage, rounded to one decimal place.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions