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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
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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
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