Question: Gary's Shoes and Accessories is attempting to quantify the value of a loyal customer. Al Bundy, Gary's data analyst, has carefully analyzed ten years of

Gary's Shoes and Accessories is attempting to quantify the value of a loyal customer. Al Bundy, Gary's data analyst, has carefully analyzed ten years of data and determined that Gary's customers tend to purchase a new pair of shoes every four years and the customer defection rate is 10%. The contribution margin of most of the shoe lines is 65%, and the revenue for a pair of shoes is $150. What is Gary's value of a loyal customer?
a. $243.75
b. $131.25
c. $3,900
d. $727.75

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