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The customers for your company purchase, on average, $ 358 per year. Your retention rate is 62 % and your firm uses a discount rate
The customers for your company purchase, on average, $ 358 per year. Your retention rate is 62 % and your firm uses a discount rate of 10 %. Acquisition costs are $ 105 . Finally, your firm incurs marketing communication/promotion costs of $ 40 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.
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