here is my answer I only need help with the number 3

2. Calculate cost per aceuitition for each channel. - Ppec CPA - Social Modia ds CPA - Original coritent crestion CPA - Emar marketing CPA - Pubse relations and events CPA Background Netflix has become an online video streaming platform categorized by high loyalty for its original content such as "Stranger Things" and "The Great British Baking Show." In 2000, Netflix was a movie rental service that delivered DVDs by mail. In 2007, the company began online streaming in the United States and in 2013 offered its first original content. In 2016 Netflix was available in 190 countries. Recent focus has been on increasing the number of subscribers outside of the U.S. Netflix has certainly had success in the entertainment streaming industry, an industry that includes a number of competitors hoping to succeed in the streaming market, including Amazon, Hulu, Disney, HBO, and NBC. Metrics Although Netflix obtains paying subscribers through unique deals like bundles and discounts, these are the numbers you should use to calculate your metrics in this assignment: - $12.99/ month for a paid subscription * 12=$155.88 annual revenue - Cost to acquire and maintain each subscriber = $99 annually - Annual Retention rate =60% - Annual Discount rate =10% Getting Started Customer lifetime value (CLV) informs companies about how much a customer is worth to them. It's especially important for companies like Netflix, where they want customers to continue to subscribe to services. These metrics focus on the LONG TERM value a single customer brings to the company. You can calculate the Customer Lifetime Value using this formula: CLV = (Average Profits per Customer per Period) Retention rate = percentage of customers who remain loyal over time Discount rate = cost of capital for the organization Channel Metrics Netflix uses pay-per-click (PPC), social media advertising, original content creation, email marketing, and PR \& event channels to acquire customers. Use these metrics as assumptions for Netflix's ad spend per channel: - PPC: $60m - Social Ads: $175m - Original content creation: $300m - Email marketing: $50m - PR \& Events: $75m And assume these are the total conversions per channel: - PPC: 500k - Social Media Ads: 2.3m - Original content creation: 2.8m - Email marketing: 300K - PR \& Events: 200k The formula to calculate cost per acquisition: CPA=TotalattributedConversionsTotalAdSpend For this assignment refer to the background given on Netflix in the Stukent chapter's 'Student Resources' section (also attached to this assignment). 1: What is the CLV for Netflix? Show your work. $155.88$99=$56.88 2. Calculate cost per acquisition for each channel. PPC CPA =$60M/500K(0.5M)=$120M - Social Media Ads CPA =$175M/2.3M=$76.09M - Original content creation CPA=$300M/2.8M=107.14M - Email marketing CPA=$50M/300K=$50M/0.3M=166.66M - Public relations and events CPA=$75M/200K(0.2M)=375M 3. Optimize the budget allocation between channels. Considering the calculated data from prompt 2, make recommendations for future budget allocation. Allocate your marketing budget to maximize the amount of conversions. Assume that you have the same total budget ( 5660m) and no one channel can receive more than $300m in budget. List your budget allocations in bullets or a chart