Question: Using his TightWad ( R ) database, Stu's MileageMiser has developed a new GPS based service to certify drivers for insurance discounts. He tracks their

Using his TightWad(R) database, Stu's MileageMiser has developed a new GPS based service to certify drivers for insurance discounts. He tracks their speeds, locations, and braking activity and delivers reports to insurance companies. January 1,2009 he had 5,900 paying customers. Of that group, a year later, 3,200 were still customers. He spent $15,000 on programs designed to keep current customers happy and $34,100 on marketing to acquire new customers. His total number of customers on January 1,2010 was 7,000. His revenue per customer is $37 per year and variable costs before marketing per customer are $7 per year.
For current customers, what is annual average customer margin after deducting the average retention spending?

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