1.

Use the Excel template VLC to find the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $80 per visit, the frequency of repurchase is seven times per year, the contribution margin is 5 percent, and the average customer defection rate is 50 percent? Round your answer to the nearest dollar.

Revenue per unit $100.00 Percent contribution margin to profit and overhead 50.0% Repurchase frequency (purchases/year) 0.25 Defection rate 0.4 Buyer's life cycle 2.50 VLC $31.25Contribution Repurchase Defection Price Margin Frequency Rate VLC in $ $30 0.50 3 15% $ (a) $30 0.56 15% $ (b) $30 0.50 O W u 14% $ (c) $30 0.50 15% $