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Note: You MUST completely explain your rationale in order for any partial credit to be given. Write both your calculations and reasoning clearly. (Round
Note: You MUST completely explain your rationale in order for any partial credit to be given. Write both your calculations and reasoning clearly. (Round percentages to one decimal point. Round currency to dollars and cents.) Net-4-You is an Internet Service Provider that charges its customers $65.95 per month for its service. The company's variable costs are $0.65 per customer per month. In addition, the company spends $0.75 per month per customer on a customer loyalty program designed to retain customers. As a result, the company's monthly customer retention rate was 82.2 percent. Net-4-You has a monthly discount rate of 4 percent. b. Suppose the company wanted to increase its customers' monthly retention rate and decided to spend an additional 35 cents per month per customer to upgrade it loyalty program benefits. By how much must Net-4-You increase its monthly customer retention rate so as not to reduce customer lifetime value resulting from a lower customer margin?
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