Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Measure maps finds that: Every shipping error over 2 shipping errors per month reduces the customer retention rate by 1 . 5 % . On

Measure maps
finds that:
Every shipping error over 2 shipping errors per month reduces the customer retention rate by 1.5%.
On average, each day above 2 days from ordered to delivered yields a reduction in the customer retention rate of 1%.
Each day before two days from order to delivery yields an increase in the customer retention rate of 1%, on average.
TMD Goal Inc.'s current customer retention rate is 70%.
The company estimates that for every 1% increase or decrease in the customer retention rate, market share changes 0.5 in the same direction.
TMD Goal Inc.'s current market share is 20.4%.
Ignoring any other factors, if the company has 4 shipping errors this month and an average of 2.5 days from ordered to delivered, determine.
a. The new customer retention rate. Round your answer to one decimal place.
%
b. The new market share that TMD Goal Inc. expects to have. Round your answer to two decimal places.
%
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services

Authors: Timothy Louwers, Allen Blay, David Sinason, Jerry Strawser, Jay Thibodeau

7th edition

978-1259573286, 1259573281, 978-1260152166

More Books

Students also viewed these Accounting questions

Question

Does the research have to be based in an organisation?

Answered: 1 week ago

Question

Are implementable recommendations a requirement for the project?

Answered: 1 week ago