Question: Use CLV Formula . . . Gary's Shoes and Accessories is attempting to quantify the value of a loyal customer. Al Bundy, Gary's data analyst,

Use CLV Formula ... Gary's Shoes and Accessories is attempting to quantify the value of a loyal customer. Al Bundy, Gary's data analyst, has carefully analyzed ten years of data and determined that its customers tend to purchase a new pair of shoes every two years and its customer defection rate is 25%. Its fixed costs are 20%, and it makes a before-tax profit of 10%. The revenue for the store's Peggy line of shoes, which accounts for virtually all of the sales, is $250. What is Gary's value of a loyal customer?
$100
$150
$200
$250

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