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Retention rate 80% Pitcher Unit sales 5266 (given) Revenues $15.16 (given) Cost of goods sold $7.80 (given) Gross margin $7.36 (given) Promotion cost All in
Retention rate 80% Pitcher Unit sales 5266 (given) Revenues $15.16 (given) Cost of goods sold $7.80 (given) Gross margin $7.36 (given) Promotion cost All in 000' Consumer promotion $4,000 (given) Other trade spending $7,000 (given) Feature price reductions $5,000 (given) Total promotional cost (a) $16,000 Advertising cost (b) $15,000 Total other costs (a+b) $31,000 Total other cost per unit $5.89 Unit margin on pitcher scale $1.47 filters Unit sales 27413 Revenues$4.10 Cost of goods sold$2.05 Gross margin $2.05 Gross margin for 2 filters$4.10 Promotion costAll in 000' Consumer promotion$1,000 Feature price reductions$1,000 Other trade spending$1,000 Total promotional cost$3,000 Advertising cost$15,000 Total other costs$18,000 Total other cost per unit$0.66 Total other cost for 2 filters$1.31 Margin on 2 pitcher scale filters$2.79 Discount rate 15% Calculate CLV
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