Click here for the Excel Data File

a$.$ Use the data table to show the impact of the number of new customers acquired ranging from $20,000$ to $30,000$ with

$1,000-$customer increments on the total costs and total increase in profit of the referral program. What are the total

costs and total profit for acquiring $28,000$ new customers?

b$.$ Use Goal Seek to find out the number of new customers needed for the referral program to break even.

Note: Round your answer to the nearest whole number.

c$.$ What does the average customer annual spending need to be in order to achieve $$5,000,000$ in profit from the

referral program, assuming $25,000$ new customers are acquired through the referral program? Now reevaluate this

ecome customers of the credit card company even without the referral program.

d$.$ Use the original assumptions for the spreadsheet model to compare the following three scenarios. Which scenario

will yield the highest profit from the referral program? What is the highest profit?

table for part D

scenario referral fee number of new customers

$150\mathrm{.}0025,000$

$275\mathrm{.}0030,000$

$3100\mathrm{.}0040,000$

AutoSave

Ch$15\_$Q$11\_$Data$\_$File.xlsx $-$ Read$-$Only

Search $($Cmd $+$ Ctrl $+$ U$)$

D$6$

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$2$ & a$.$

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a$.$

Annual spending per cust

Revenue as percent of spe

Cost of referral pros

Number of program

b$.$

Reward per new customer

Annual spending per customer

Revenue as percent of spending

Cost of referral program

Number of new customers

$\backslash \%$ of new customer who would be

customers without the referral

Profit increase

B

C

D

E

F

G

H

I

J

K

L

M

N

$0$

P

Q

R

S

T

U

v

w

Share

$\backslash ($ f$^\{\backslash$circ$\}\backslash )$

Revenue

$\backslash$$ $15,125,000\mathrm{.}00$

Sheet$1$

Ready

Accessibility: Investigate

$100\backslash \%$