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QUESTION 1 Jane Dough Pizza now better understands how to use pricing to achieve their marketing objectives, fund improvements to their business, and realize
QUESTION 1 Jane Dough Pizza now better understands how to use pricing to achieve their marketing objectives, fund improvements to their business, and realize a target profit for each pizza sold. As they continue seeking competitive advantage, Jane Dough is analyzing these suggested changes to the business and would like your help. After a late-night brainstorming session with Pinnacle Consulting to review a number of pricing and breakeven scenarios, the manager at Jane Dough's was reviewing her notes and realized she forgot to label the various calculations. Help her label each of the calculations below as either markup or margin so that she can categorize them for future analysis. A. $5 pizza cost time x 350 % -$17.5 sales price: B. $6 pizza cost/(1-70 % ) = $20 sales price: C. $4 pizza cost x 250% = $10 sales price: D. $5 pizza cost/(1-60 %) = $12.5 sales price: QUESTION 2 Calculate the customer lifetime value (CLV) and write it in the blank for the following three scenarios: = 1. Acquisition cost $1,000, retention rate = 60%, annual profit = $500: 2. Acquisition cost 3. Acquisition cost CLV is $10,000, retention rate = 75%, annual profit = $2,500: CLV is $100, retention rate = 50%, annual profit = $100: Which scenario generates the most customer lifetime value? Which is the least profitable scenario? CLV is What elements appear to be the most significant in the calculation - that is, if you were a marketer facing these scenarios, which elements would you focus upon?
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