Question: f VLC = $ 1 , 6 0 0 , price is $ 2 0 per item, contribution margin = 2 0 % , and

f VLC = $1,600, price is $20 per item, contribution margin =20%, and the repurchasing frequency is
once every six years, (a) what is the defection rate, and (b) what is the retention rate?
9. If VLC = $3,600, price is $50 per item, contribution margin =32%, and the repurchasing frequency is
once every five years, (a) what is the defection rate, and (b) what is the retention rate?
10. If VLC = $50,000, price is $120 per item, contribution margin =16%, and the repurchasing frequency
is 52 times per year, (a) what is the defection rate, and (b) what is the retention rate?

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