margins, and establish long$-$term success. Successful companies like effectiveness of this approach by creating new market spaces and capturing the attention of customers.

$($ii$)|372|$ words

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$10$ pts

Question $2$

Solve using the formula for customer lifetime value. To the degree possible, show your work.

annual revenue per average customer is $$2,000$ per annum

product costs associated with the average customer's purchases is $$500$ per year

the firm also spends $$100$ a year per customer to provide customer service

annual retention rate $($loyalty rate$)$ is $80\%$

average costs to acquire a new customer are $$1,000$

average salaries are $$62,000$

$12$ pt $vv,$ Paragraph $vv$