Jos A Bank, a mens wear chain, plans to launch 3 suits named Executive, Reserve, and Traveler The prices of the suits are $790, $540, and $350 respectively The fabrics and detail are different on the suits so the variable costs are $300, $200, and $110, respectively The design cost for the series was $250,000 and promotional spending was $4M Assuming that the sales mix for the three suits will be 1 2 5 respectively, Calculate the breakeven quantity for each suit 3 Assume that Jos A Bank was able to acquire 20,000 customers from the $4 25M If the discount rate is 8 and the retention rates in each period for segments E, R and T are 70 , 75 , and 80 respectively Calculate the CLV for each segment (The total contribution from part (a) for margins) 6 Suppose Jos A Bank is considering an increase in margin of 5 per year on all suits Calculate CLV for each segment 3 If in the second year, Jos A Bank allocates $2M for an ad campaign in a city targeting 20,000 potential customers within one segment, how many customers (round up to the nearest whole number) would need to switch in order to justify the $2M in acquisition spending Do your calculations for each segment assuming the whole 200,000 come from each respective segment Hint Use CLVs from part c Calculate the BAR and multiply by the target size 6 Suppose the demand last year for Reserve suit was 80,000 units at the original $540 price How much profit did they make last year, assuming that the fixed cost is spread equally across the models 2

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Jos. A Bank, a mens wear chain, plans to launch 3 suits named: Executive, Reserve, and Traveler. The prices of the suits are $790, $540, and $350 respectively. The fabrics and detail are different on the suits so the variable costs are $300, $200, and $110, respectively. The design cost for the series was $250,000 and promotional spending was $4M. Assuming that the sales mix for the three suits will be 1:2:5 respectively,
1. Calculate the breakeven quantity for each suit. [3]

Assume that Jos. A Bank was able to acquire 20,000 customers from the $4.25M. If the discount rate is 8% and the retention rates in each period for segments E, R and T are 70%, 75%, and 80% respectively. Calculate the CLV for each segment (The total contribution from part (a) for margins). [6]

Suppose Jos. A Bank is considering an increase in margin of 5% per year on all suits. Calculate CLV for each segment. [3]

If in the second year, Jos. A Bank allocates $2M for an ad campaign in a city targeting 20,000 potential customers within one segment, how many customers (round up to the nearest whole number) would need to switch in order to justify the $2M in acquisition spending. Do your calculations for each segment assuming the whole 200,000 come from each respective segment. [Hint: Use CLVs from part c. Calculate the BAR and multiply by the target size] [6]

Suppose the demand last year for Reserve suit was 80,000 units at the original $540 price. How much profit did they make last year, assuming that the fixed cost is spread equally across the models? [2]