Your average sale is $1000 with a 50% profit margin. Last year (2020) you had 100 returning customers and acquired 120 new customers. Your customers tend to request your services 3 times a year and tend to be loyal for 2 years.

In 2020, you spent $40,000 on advertising and marketing and paid an employee $75,000 to help you with marketing tasks.

1. What is the Customer Lifetime Value?