XYZ Inc. is a subscription-based online software company that wants to calculate the customer lifetime value (CLV)

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XYZ Inc. is a subscription-based online software company that wants to calculate the customer lifetime value (CLV) of its customers. The company has been in business for three years and has the following data:

Average monthly recurring revenue (MRR): $100
Average customer lifespan (CLS): 2 years
Gross profit margin (GPM): 60%
Customer acquisition cost (CAC): $300

Using this information, calculate the customer lifetime value for XYZ Inc.

(Show all calculations and round to two decimal places)

Related Book For answer-question

Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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Posted Date: Mar 06, 2023 03:53 AM

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XYZ Inc. is a subscription-based online software company that wants to calculate the customer lifetime value (CLV)

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The detailed answer for the above question is provided below Step 1 Calculate the annual recurring r... View the full answer

Cost management a strategic approach

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