Homework Help is Here – Start Your Trial Now!
Business
Economics
Spreadsheet Use the Excel template VLC to find the average value of a loyal custormer (VLC) in a target market segment if the average purchase price is $75 per visit, the frequency of repurchase is five times per year, the contribution margin is 5 percent, and the average customer defection rate is 25 percent? Round your answer to the nearest dollar

Spreadsheet Use the Excel template VLC to find the average value of a loyal custormer (VLC) in a target market segment if the average purchase price is $75 per visit, the frequency of repurchase is five times per year, the contribution margin is 5 percent, and the average customer defection rate is 25 percent? Round your answer to the nearest dollar

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question

6

Spreadsheet Use the Excel template VLC to find the average value of a loyal custormer (VLC) in a target market segment if the average purchase price is $75 per visit, the frequency of repurchase is five times per year, the contribution margin is 5 percent, and the average customer defection rate is 25 percent? Round your answer to the nearest dollar
Transcribed Image Text:Spreadsheet Use the Excel template VLC to find the average value of a loyal custormer (VLC) in a target market segment if the average purchase price is $75 per visit, the frequency of repurchase is five times per year, the contribution margin is 5 percent, and the average customer defection rate is 25 percent? Round your answer to the nearest dollar
Revenue per unit Percent contribution margin to profit and overhead $100.00 50.0% 0.25 Repurchase frequency (purchases/year) Defection rate 0.4 Buyer's life cycle VLC 2.50 $31.25
Transcribed Image Text:Revenue per unit Percent contribution margin to profit and overhead $100.00 50.0% 0.25 Repurchase frequency (purchases/year) Defection rate 0.4 Buyer's life cycle VLC 2.50 $31.25
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS