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Subscriptions to Genie.com cost $10 per month and you can cancel subscription any month. Genie's gross margin is 40% There are no variable costs associated
Subscriptions to Genie.com cost $10 per month and you can cancel subscription any month. Genie's gross margin is 40% There are no variable costs associated with providing this service to an individual customer and the firm does not engage in any customer retention activities. Based on a sample of 1000 customers that joined Genie.com five years ago they were able to determine how many of those customers remained subscribers in the second year, third year etc. Based on this information, Genie calculated the average monthly retention rate to be 75%. Assume the monthly discount rate for Genie is negligible. What is the CLV for a typical Genie customer
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