Based on information from the Chase Sapphire case

(1).For the 100,000 bonus point offer, do the margin analysis for each customer type (transactors, revolvers, and churners). The table below provides complete information (assumptions and facts) for you to do the analysis. Fill in the cell with a ? with a number based on your calculation.

(2). How long will transactors need to remain cardholders in order to generate enough revenue to cover the acquisition expense?

(3). How much would transactors and revolvers need to spend in the first year in order to cover the acquisition costs?

Year 1	Transactors	Revolvers	Churners
Assumptions
Anuual spend	$18,000	$18,000	$4,000
Percent of balance on revolve	0%	50%	0%
Case facts
Interchange fee on spend	1.50%	1.50%	1.50%
Interest rate on revolve balance	20.50%	20.50%	20.50%
Customer revenues
Annual card fee	$450	$450	$450
Interchange fee revenue on spend	?	?	?
interest revenue on unpaid balance	?	?	?
Acquisition expenses
Card acquisition expense	$350	$350	$350
Bonus point expense (@100 k) (1.5% x 100k)	$1,500	$1,500	$1,500
Margin	?	?	?