How much is the Customer Lifetime Value? Assumptions: Retention rate = 75%, average annual customer purchase $20,000,

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How much is the Customer Lifetime Value?

Assumptions:

Retention rate = 75%,

average annual customer purchase $20,000,

contribution margin of 30.2%,

annual fixed costs $100,000 ($5,000 per customer),

i = cost of capital = 0.10,

growth = 0, without new cash investments.

Related Book For answer-question

Managerial Accounting

ISBN: 9781259275814

11th Canadian Edition

Authors: Ray H Garrison, Alan Webb, Theresa Libby

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Posted Date: Oct 06, 2023 02:47 AM

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How much is the Customer Lifetime Value? Assumptions: Retention rate = 75%, average annual customer purchase $20,000,

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calculate the Customer Lifetime Value CLV based on the gi... View the full answer

Managerial Accounting

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