Answered step by step
Verified Expert Solution
Question
1 Approved Answer
O Spreadsheet A retail store sells a popular cosmetic called Devine and the store manager was given $150,000 by the corporate office to improve store
O Spreadsheet A retail store sells a popular cosmetic called Devine and the store manager was given $150,000 by the corporate office to improve store performance any way she thinks best. The "bese case" information is a price of $28 per bottle, a contribution margin of 0.45, a customer defection rate of 18 percent, and a repurchase frequency of two times a year. I these improvement funds could be used to (o) increase the contribution margin to 0.51 or (b) reduce the customer defection rate to 15 percent or (c) increase the repurchase frequency to five times per year. Assume all other variables remain at the base case level for each of the three improvement options. Use the Excel template VLC to cakulate the VLC for each option and summarize your answers using the table below. Round your answers to the nearest cent. Contribution Price Repurchase Margin Defection Frequency Rate VLC in $ $28 045 2 18% $ (0) $28 0.51 2 18% $ (b) $28 0.45 2 15% $ (c) $28 0.45 5 18% $ What is the best way to use $150,000 in improvement funds? The best way to use the $150,000 in improvement funds is -Select
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started