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Study It$-$ Chapter $02$ Practice Test: Measuring Performance in Operations and Value Chains

Current Test: Chapters: $2$

Question $3$:

What is the average value of a loyal customer $($VLC$)$ in a target market segment if the average purchase price is $$65$ per visit, the frequency of repurchase is $6$ times per year, the contribution margin is $10$ percent, and the average customer defection rate is $50$ percent? Round your answer to the nearest dollar.

$$42$

$$47$

$$54$

$$78$