Humberto’s Salsas is a regional manufacturer of salsa sand sauces. Humberto sells primarily through three types of distributor: TypeA (discountrate10%), TypeB (discountrate12%), TypeC (16%). He currently retains about 60% of each type of distributor and wants to know the lifetime time value of each at different retention rates. Using the CLV formula and the margin multiplier, calculate the annual profit for each type of distributor at70%, 80%, and 90% retention.The current 60% is already calculated for you. Margin $40,000.00 55,000.00 75,000.00 Discount 10% 12% 16% Retention 60% $ 48,000.00 $ 63,250.00 $ 80,250.00 Rate 70% 80% 90% 1. Identify at least 3 things you would point out to Humberto about your calculations, 2. Recommend one course of action of Humberto based upon the strategies identified in the reading
Humberto’s Salsas is a regional manufacturer of salsa sand sauces. Humberto sells primarily through three types of distributor: TypeA (discountrate10%), TypeB (discountrate12%), TypeC (16%). He currently retains about 60% of each type of distributor and wants to know the lifetime time value of each at different retention rates. Using the CLV formula and the margin multiplier, calculate the annual profit for each type of distributor at70%, 80%, and 90% retention.The current 60% is already calculated for you. Margin $40,000.00 55,000.00 75,000.00 Discount 10% 12% 16% Retention 60% $ 48,000.00 $ 63,250.00 $ 80,250.00 Rate 70% 80% 90% 1. Identify at least 3 things you would point out to Humberto about your calculations, 2. Recommend one course of action of Humberto based upon the strategies identified in the reading
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Humberto’s Salsas is a regional manufacturer of salsa sand sauces. Humberto sells primarily through three types of distributor: TypeA (discountrate10%), TypeB (discountrate12%), TypeC (16%). He currently retains about 60% of each type of distributor and wants to know the lifetime time value of each at different retention rates. Using the CLV formula and the margin multiplier, calculate the annual profit for each type of distributor at70%, 80%, and 90% retention.The current 60%
is already calculated for you.
Margin $40,000.00 55,000.00 75,000.00
Discount 10% 12% 16%
Retention 60% $ 48,000.00 $ 63,250.00 $ 80,250.00
Rate 70%
80%
90%
1. Identify at least 3 things you would point out to Humberto about your calculations,
2. Recommend one course of action of Humberto based upon the strategies identified in the reading
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