Question 7 & 8 show your work

Quistion 6 3 points Savelewel 6- Home renovation services are a highly competitive market where customers are not loyal. Every single one of them is at risk of leaving to another brand. The Patio-Builders Company wants to spend $90,000 on a public buses ad that will reach 200,000 people who are 18+ and living near the city. The margin of the renovation service is Sim/month and the PatioA Builders Company believes that 2% will take advantage of this offer. CLV of the acquired customer is $200. Aside from the brand awareness benets, the Patio-Builders Company wants to know if the advertising is worth it from an economic perspective. a. What is the average acquisition Cost? (1 mark) b. What is the prospect lifetime value (PLV)? Please round to TWO decimal places. (1 mark) c. Is the proposed acquisition spending attractive (YIN)? Why? (1 mark) QpEStion 7 5 points SaveAnsuer 7 The Rousalino Marketing Company sells 5 units at a price of 590 and three units at a price of $110. If demand is linear: a. What is the quantity that the customer willing to buy if the price of the product is zero? Rounded to zero decimal places. (1 mark) b. What is the lowest price at which quantity demanded equals zero? Rounded to zero decimal places. (1 mark) c. What is the slope of the linear demand curve? Rounded to one decimal places (1 mark) d. using slope from part c, at a price of $10, the company sells 60 units. What is the elasticity? Rounded to two decimal places. (1 mark) e. What does the elasticity calculated in (d) mean? (1 mark)