Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The customers for your company purchase, on average, $ 334 per year. Your retention rate is 61 % and your firm uses a discount rate
The customers for your company purchase, on average, $ 334 per year. Your retention rate is 61 % and your firm uses a discount rate of 12 %. Acquisition costs are $ 114 . Finally, your firm incurs marketing communication/promotion costs of $ 42 per customer per year. What is the necessary margin (as a percent of sales) to breakeven? In other words, at what margin (as a percent of sales) is CLV = 0? Record your answer as a percentage, rounded to one decimal place. ANSWER IS 41.1... PLEASE SHOW WORK HOW TO GET IT. Thank you!!!
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