Question: Please explain the formula step by step. What is the value of a loyal customer (VLC) in the small contractor target market segment who buys

Please explain the formula step by step.

What is the value of a loyal customer (VLC) in the small contractor target market segment who buys an electric drill on average every four years (or every 0.25 year) for $100, when the gross margin on the drill averages 50 percent, and the customer retention rate is 60 percent? What is a 1 percent change in market share worth to the manufacturer if it represents 100,000 customers? Round your answer for the value of a loyal customer to the nearest cent and your answer for the worth of a 1 percent change in market share to the nearest dollar. Use the rounded value of a loyal customer to calculate the worth of 1 percent change in market share. If the customer retention rate is 60 percent, the VLC is $ The worth of a 1 percent change in market share is $ What if the customer retention rate increases to 80 percent? Round your answer for the value of a loyal customer to the nearest cent and your answer for the worth of a 1 percent change in market share to the nearest dollar. Use the rounded value of a loyal customer to calculate the worth of 1 percent change in market share. If the customer retention rate is 80 percent, the VLC is $ The worth of a 1 percent change in market share is $

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