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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 parttime 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 parttime employee costs Leo $ per year in salary and benefits. There are an additional $ of marketing costs allocated for billboards, farmers market booth fees, and other local advertising. In the past year, they had total customers of which were new, unique buyers that accounted for $ of total sales at an average margin of Leo estimates that their average new customer continues to purchase from the company for years.
AppleCart, an online fruit distributor, approaches Leo about distributing excess bushels of his Golden Delicious apples through their website. They charge $ per SKU on their site. Leo would sell AppleCart his bushels for $ each and estimates that AppleCart will reach only new. customers. AppleCart estimates that they will sell 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 bushel each.
is INCORRECT.
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