At Dive Shop Inc, regular customers place about 4.6 orders per year. These orders average $100 in
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At Dive Shop Inc, regular customers place about 4.6 orders per year. These orders average $100 in retail value, and contribution margin percent is typically 35%. Acquiring a new customer costs Dive Shop about $120, and Dive Shop also spends $30 per customer per year on contests, deals, and communications to keep them coming back. Dive Shop's retention rate is 75%, and the corporate discount rate is 11%.
Calculate the net present value of 1 regular customer at Dive Shop. Rounding: penny. Remember, the answer may be negative.
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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