lan Shields Communications, Inc., a cellular communications provider based in Michigan, has determined that its average...
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lan Shields Communications, Inc., a cellular communications provider based in Michigan, has determined that its average CLV per customer is $1,210. Last year, the company obtained 57,100 new customers while spending $3.15 million on advertising and promotion. In terms of personnel and operational costs, they spent $5.27 million on their sales force and the total cost of their retail stores was $16.60 million, of which approximately 79% supported service and operations and the remainder was deemed for marketing and sales. Finally, corporate overhead was $3.99 million. Manny Figuers, the CFO, pointed out that approximately 20% of the leadership team at the corporate offices spent their time on marketing and sale force management related tasks and should be included in the CAC calculation. What would be the new CAC under with this additional cost? lan Shields Communications, Inc., a cellular communications provider based in Michigan, has determined that its average CLV per customer is $1,210. Last year, the company obtained 57,100 new customers while spending $3.15 million on advertising and promotion. In terms of personnel and operational costs, they spent $5.27 million on their sales force and the total cost of their retail stores was $16.60 million, of which approximately 79% supported service and operations and the remainder was deemed for marketing and sales. Finally, corporate overhead was $3.99 million. Manny Figuers, the CFO, pointed out that approximately 20% of the leadership team at the corporate offices spent their time on marketing and sale force management related tasks and should be included in the CAC calculation. What would be the new CAC under with this additional cost?
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To calculate the Customer Acquisition Cost CAC with the additional cost included we need to consider ... View the full answer
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Auditing Cases An Interactive Learning Approach
ISBN: 978-0132423502
4th Edition
Authors: Steven M Glover, Douglas F Prawitt
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