5. Using his TightWad(R) database, Stu's MileageMiser has developed a new GPS based service to certify drivers for insurance discounts. He tracks their speeds, locations, and braking activity and delivers reports to insurance companies. January 1, 2009 he had 10,000 paying customers. Of that group, a year later, 9,900 were still customers. He spent $24,000 on programs designed to keep current customers happy and $45,000 on marketing to acquire new customers. His total number of customers on January 1, 2010 was 14,000. His revenue per customer is $55 per year and variable costs before marketing per customer are $5 per year. a) How many new customers did Stu acquire in 2009? b) What was the average cost of acquiring a customer? c) What is the average number of customers served in 2009? Hint: How do you compute the average balance during a period given the beginning and ending balances? d) Assuming Stu acquires new customers and loses existing customers at a steady rate throughout the year, what was the average retention spending per customer in 2009? Hint: You should use the average number of customers from the previous question to calculate this cost. e) What is Stu's annual churn rate? What is retention rate? f) For current customers, what is annual average customer margin after deducting the average retention spending? Hint: You've already computed the average retention spending in the previous question. B) What is Stu's CLV for each customer if the annual discount rate is 1%? Hint: You've already computed margin ($) and retention rate (%) in the previous questions.