Question $21$

An online computer company has a $90$ percent customer retention rate. Their accounting department estimates the contribution margin to profit and overhead at $40$ percent, and the value of a loyal customer is $$200.$ What is the value a loyal customer if the company manages to improve its retention rate to $95$ percent?

Insufficient information is given to answer the question

$$400$

$$720$

$$1,600$

$$800$