Question 5. A retail company has decided to offer its own unique line of a smartphone case. They want to sell the cases both in their own retail stores and through online stores. Calculate the CLV per customer over the next 10 years considering the following information (Hint: Calculate Regular CLV). (4 points)

The company spend on initial acquisition cost per customer is $250.

The average customer revenues start at $500 in year one and increase by 10% per year by year 10.

The average customer costs start at $250 in year one and increase by 10% per year by year 10.

The customer retention rate is 75%.

Monthly discount rate is 1%.

Question 6. Please calculate the regular CLV by using the following information (4 points)

Annual Interest Rate: 8%

	Current Year	Year 1	Year 2	Year 3
Total Number of Customers	100,000	120,000	140,000	160,000
New Customers		40,000	50,000	62,000
Retention Rate		(A)	(B)	(C)
Average Orders per Year		1.8	2.5	3
Average Order Size		$90	$95	$100
Total Revenue Per Customer		(D)	(E)	(F)
Individual Cost of Sales Rate		70%	65%	60%
Individual Cost of Sales Per Customer		(J)	(K)	(L)
Contribution Margin		(G)	(H)	(I)
Total Marketing Costs(M)		$5,500,000	$1,200,000	$840,000

(1) Calculate retention rate for the next three years.

(A) _______________ (B) _________________ (C) _________________

(2) Calculate total revenue for the next three years.

(D) _______________ (E) _________________ (F) _________________

(3) Calculate cost of sales for the next three years.

(J)_________________ (K)________________ (L) _________________

(4) Calculate contribution margin for the next three years.

(G) _________________ (H) ______________ (I) _________________

(5) Calculate the CLV per customer.