Chapter $02$ Homework: Measuring Performance in Operations and Value Chains

ignment: Apply It$-$ Chapter $02$ Homework: Measuring Performance in Operations and Value Chains

Assignment Score: $27\mathrm{.}85\%$

estions Problem $2-41$ Algo $($Analytics in Operations Management$)$

Question $3$ of $7$

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Estimate the value of a loyal customer of a loyal Volvo automobile owner. Assume the contribution margin is $0\mathrm{.}28,$ the purchase price is $$63,000,$ the repurchase frequency is every six years, and the customer defection rate is $27$ percent. Do not round intermediate calculations. Round your answer to the nearest dollar.

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