You have recently been asked by your boss to come up with an estimate of customer lifetime
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Question:
Average order: $ 498
Frequency of orders: 1.4 /year
Average margin: 57 % markup on retail
Customer retention rate: 68 %
Promotional/communication costs/yr $ 36
Your discount rate: 10 %
Customer acquisition cost $ 304
Calculate the expected customer lifetime value for a new customer, rounded to the nearest dollar.
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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