Using Customer lifetime value answer the question below

Greybolt has to spend $1,000,000 on marketing its Christmas events. There are two customer groups with the following data.

Which group should Greybolt spend its marketing budget on? (show your work)

Customer Group A

Average gross revenue per customer is $500

Cost of goods sold is $150

Gross profit per customer equals $500 -$150 = $350

In 2019 150 customers was acquired and in 2020 only 75 customers remained

Customer group B

In 2020 marketing sells expenses $158,000

Acquire 200 customers

Customers in this group spends an average of $800 each