Question: Answer questions in the first screenshot please. The second screenshot is the data needed, and the third is the formulas. thank you Simple LTV of


Answer questions in the first screenshot please. The second screenshot is the data needed, and the third is the formulas. thank you
Simple LTV of Starbucks (use cells to right to compute; use as many cells as necessary) Customer Retention Rate Average Gross Margin/Lifespan Traditional LTV of Starbucks Average LTV of Starbucks (average of the two above) Customer Average Expenditure Per Visit Number of Visits Per Month A $ 3.50 16 B $ 8.50 12 C $ 5.55 20 D $ 6.75 24 E $ 6.20 12 F $ 7.10 8 G $ 4.45 6 H $ 2.95 20 j $ 4.75 11 K $ 5.05 18 L $ 8.30 4 M $ 8.70 5 N $ 6.45 12 P $ 5.25 11 Q $ 4.80 19 R $ 4.35 10 S $ 4.80 15 T $ 5.60 3 U $ 5.00 7 V $ 4.90 15 Supplied Information Average Customer Lifespan: 12.5 years Profit Margin (per customer): 21.30% Rate of Discount: 10.00% Customers at beginning of Month 107,000,000 Customers acquired during Month 3,500,000 Customer at end of Month 105,000,000 Period One Month FORMULAS Customer Retention Rate ((E-N)/S)*100 Simple LTV (# periods in a year)(A)xT M(R/(1 + i - R)) Traditional LTV Average Gross Margin per Customer Lifespan Average Customer Expenditures over Lifespan x Profit Margin E = Ending number of customers in period S = Starting number of customers in period N = New number of customers added in period A = Average customer value per period T = Average customer lifespan measured in years i = Rate of discount (present value of future cash flows) R = Customer retention rate M = Average gross margin per customer lifespan
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