Ian Shields Communications, Inc., a cellular

communications provider based in Michigan, has

determined that its average CLV per customer is $$1,210.$

Last year, the company obtained $57,100$ new customers

while spending $$3\mathrm{.}15$ million on advertising and

promotion. In terms of personnel and operational costs,

they spent $$$\mathrm{.}27$ million on their sales force and the total

cost of their retail stores was $$16\mathrm{.}60$ million, of which

approximately $79\%$ supported service and operations and

the remainder was deemed for marketing and sales.

Finally, corporate overhead was $$3\mathrm{.}99$ million.

Manny Figuers, the CFO, pointed out that approximately

$20\%$ of the leadership team at the corporate offices spent

their time on marketing and sale force management

related tasks and should be included in the CAC

calculation. What would be the new CAC under with this

additional cost?

CALCULATED VARIABLES:

ratio $=5\mathrm{.}80$

cac $=$$$208\mathrm{.}58$

tmcost $=$$$11\mathrm{.}91$

rmcost $=$$$3\mathrm{.}49$