Marketing/finance help

Music-4-You is an Internet Music Service Provider that charges its 10 million customers $27.05 per month for its service. The company's variable costs are $0.55 per customer per month. In addition, the company spends $0.85 per month per customer on a customer loyalty program designed to retain customers. As a result, the company's monthly customer retention rate was 85.2 percent. Music-4-You has a monthly discount rate of 3 percent. What is the customer lifetime value for Music-4-You? Music-4-You is an Internet Music Service Provider that charges its 10 million customers $27.05 per month for its service. The company's variable costs are $0.55 per customer per month. In addition, the company spends $0.85 per month per customer on a customer loyalty program designed to retain customers. As a result, the company's monthly customer retention rate was 85.2 percent. Music-4-You has a monthly discount rate of 3 percent. Suppose the company wanted to increase its customers' monthly retention rate and decided to spend an additional $5 cents per month per customer to upgrade it loyalty program benefits. By how much must Music-4-You increase its monthly customer retention rate so as not to reduce customer lifetime value resulting from a lower customer margin