A supermarket XYZ is determined to please its customers with a customer advantage card. Currently 30% of all shoppers are loyal to XYZ. A loyal customer shops at XYZ 80% of the time. An unloyal customer shops at XYZ 10% of the time. A typical customer spends $150 each week and the profit margin at XYZ is 7.5%. The expected increase of loyal customers is 8% and the percentage of time a loyal customer shops at XYZ is expected to increase by 9%. What is the maximum cost of the advantage card per dollar in order for the program to be profitable?

Answer rating: 100% (QA)

Total loyal costumer percentage shopping 30 x 80100 24 ... View the full answer