A local restaurant prides itself in having a high number of return customers. To build loyalty,...

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A local restaurant prides itself in having a high number of return customers. To build loyalty, the owner of the restaurant offers a free Prime Rib dinner (value $20) to any customer who purchases a meal during 10 previous visits. Meals purchased are tracked by stamps on a Loyalty Card. At the end of a month, the owner decides to calculate the customer retention cost. The data is the following: • Number of Customers at Start of Month = 100 • Number of Customers at End of Month = 120 • Number of New Customers = 40 • Value of Free Dinners Redeemed = $240 What was the Customer Retention Cost? A local restaurant prides itself in having a high number of return customers. To build loyalty, the owner of the restaurant offers a free Prime Rib dinner (value $20) to any customer who purchases a meal during 10 previous visits. Meals purchased are tracked by stamps on a Loyalty Card. At the end of a month, the owner decides to calculate the customer retention cost. The data is the following: • Number of Customers at Start of Month = 100 • Number of Customers at End of Month = 120 • Number of New Customers = 40 • Value of Free Dinners Redeemed = $240 What was the Customer Retention Cost?

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To calculate the customer retention cost we need to determine the total c... View the full answer