1. Without discounting cash flows to take into account the time value of money, how soon will SGC break even on the following customers? In all cases, assume that revenues and variable costs to staff the ranges occur on an ongoing basis but that the acquisition costs are a one-time event.
2. 1. Little Toms
3. 2. Summer Bliss
4. 3. An Elite Golfer if HGC places the ad in the local golfer enthusiast magazine
5. 4. An Elite Golfer is HGC purchases the list and invites all target customers to the gala event
6. 5. Variety Peekers

Table 1: Summary of Customer Data Elite Variety Elite Golfers (Print) Little Toms Summer olfers peekers (Party) Bliss 1,500 300 12,500 | 50 Contact Cost 1,000 10% 15% 0.5% 25% 25% Response Rate Acquisition Cost Workers Needed Worker Labor | 1 , 500 Cost/Hour Instructors Needed Instructor Labor Cost/Hour 1,500 1,500 1,500 1,500 $ 3,000 X 0 4,500 Total Cost/Hr 3,000 7,500 7,500 4,500 PricelHr Margin/Hr Margin Annual Hours 10 Annual Margin | 6,500 4 20 20 1.5 75/o 50% 60% 60% 35% Retention Rate Interest Rate 10%