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Leo's Apples is local farm that grows and sells their delicious apples and apple products from their roadside stand and at farmers markets. They have

Leo's Apples is local farm that grows and sells their delicious apples and apple products from their roadside stand and at farmers markets. They have one part-time employee who focuses all their time on marketing and sales - going to farmer's markets, developing and implementing plans to attract customers to their roadside stand, and other marketing related tasks. The part-time employee costs Leo $34,000 per year in salary and benefits. There are an additional $15,000 of marketing costs allocated for billboards, farmers market booth fees, and other local advertising. In the past year, they had 5,200 total customers of which 1,280 were new, unique buyers that accounted for $88,300 of total sales at an average margin of 52. Leo estimates that their average new customer continues to purchase from the company for 4 years.
AppleCart, an online fruit distributor, approaches Leo about distributing excess bushels of his Golden Delicious apples through their website. They charge $5,000 per SKU on their site. Leo would sell AppleCart his bushels for $10 each and estimates that AppleCart will reach only new. customers. AppleCart estimates that they will sell 500 bushels each year. What would be the CLV / CAC ratio presuming the same margin as the rest of his business and that customers only purchased 1 bushel each.
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