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Ian Shields Communications, Inc., a cellular communications provider based in Michigan, has determined that its average CLV per customer is $ 1 , 3 9

Ian Shields Communications, Inc., a cellular communications provider based in Michigan, has determined that its average CLV per customer is $1,390. Last year, the company obtained 59,100 new customers while spending $3.22 million on advertising and promotion. In terms of personnel and operational costs, they spent $5.04 million on their sales force and the total cost of their retail stores was $17.20 million, of which approximately 74% supported service and operations and the remainder was deemed for marketing and sales. Finally, corporate overhead was $3.87 million. What was the customer acquisition cost (CAC) for last year?

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