Question: Ian Shields Communications, Inc., a cellular communications provider based in Michigan, has determined that its average CLV per customer is $1,310. Last year, the company
Ian Shields Communications, Inc., a cellular communications provider based in Michigan, has determined that its average CLV per customer is $1,310. Last year, the company obtained 61,700 new customers while spending $3.10 million on advertising and promotion. In terms of personnel and operational costs, they spent $4.98 million on their sales force and the total cost of their retail stores was $16.50 million, of which approximately 73% supported service and operations and the remainder was deemed for marketing and sales. Finally, corporate overhead was $3.89 million. What cost should be allocated to marketing and sales for their retail stores last year? Smillion Ian Shields Communications, Inc., a cellular communications provider based in Michigan, has determined that its average CLV per customer is $1,310. Last year, the company obtained 61,700 new customers while spending $3.10 million on advertising and promotion. In terms of personnel and operational costs, they spent $4.98 million on their sales force and the total cost of their retail stores was $16.50 million, of which approximately 73% supported service and operations and the remainder was deemed for marketing and sales. Finally, corporate overhead was $3.89 million. What cost should be allocated to marketing and sales for their retail stores last year? Smillion
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