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Unicorn Bakery is a new high-end bakery lo cated in the Golden Coast area of Chicago. They are a full service organic, gluten-free bakery that

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Unicorn Bakery is a new high-end bakery lo cated in the Golden Coast area of Chicago. They are a full service organic, gluten-free bakery that caters to the discerning guest. Unicorn sells the best cookie in town, and they are interested in learning more about their customer acquisition strategy Their analytics show that customers purchase 30 cookies a year at a cost of $5 each. Their margin on each cookie is 85% mainly due to their baking costs. They recently ran an ad in the newspaper and determined that the acquisition costs for these new customers was $300. This has them highly concerned about their profitability Through analysis. they determine that they maintain a yearly retention rate of 90%. Assume a discount rate is ana What is the Yearly Profit (adjusted for their discount rate) for Unicorn Bakery in Year 2? $45.00 $98.52 $64.13 $108.38

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