Assume that a company calculates customer lifotime value (CLV) using a margin multiple. Assume the margin...
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Assume that a company calculates customer lifotime value (CLV) using a margin multiple. Assume the margin multiple is 2.5 and corresponds to an 80% retention rate (r) with a 12% discount rate (1). Assume the estimated average monthly revenue of a customer is $125, and the estimated average monthly cost of a customer is $40. What is the CLV of the estimated average customer? Assume that a company calculates customer lifotime value (CLV) using a margin multiple. Assume the margin multiple is 2.5 and corresponds to an 80% retention rate (r) with a 12% discount rate (1). Assume the estimated average monthly revenue of a customer is $125, and the estimated average monthly cost of a customer is $40. What is the CLV of the estimated average customer?
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2550 Explanation and working 2550 is the CLV of the estimated average customer CLV Margin ... View the full answer
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Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
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