Answer:
the average profit from selling a car = $25,500 x 9% = $2,295
the average profit from providing 1 service = $122
customer lifetime value = (Annual profit per customer x customer relationship in years) - customer acquisition cost
the current CLV = $2,295 + ($122 x 8 x 81%) = $3,085.56
if you are able to increase the probability of using the company's maintenance services by 5% (from 815 to 86%), then the new CLV = $2,295 + ($122 x 8 x 86%) = $3,134.36
the difference = $3,134.36 - $3,085.56 = $48.80
Theoretically, you can spend up to $48.80 in the service loyalty program. But this analysis is incomplete, since providing a good service should also increase the possibility of selling a new car to the same customer after 5 years. This should extend the customer relationship for many years. E.g. that has been a major factor in the success of Honda and Toyota.
CPI (Consumer Price Index) is a measure of changes in prices paid by consumers for goods and services. It is used to estimate the changes in prices.
Therefore;
Change in prices = (CPI in current year - CPI in base year)/CPI in base year
Substituting for the values given in the current problem
Changes in prices = (108-100)/100 = 8/100 = 0.08 or 8%.
This shows that prices increased by 8% in the current year compared to the base year.
Answer:
the bond interest expense for the six months ended June 30, 2021, in the amount of $10,8864
Explanation:
The computation of the interest expense is shown below
= Carrying Value of Bond × Effective interest rate
= $217,719 × 10% yield interest × 6 months ÷ 12 months
= $10,886
Hence, the bond interest expense for the six months ended June 30, 2021, in the amount of $10,8864
Therefore the second option is correct
Limiting the <u>frequency </u>that the RSS feed updates (once per day, once per week, etc) and by limiting the <u>number of posts</u> each time Hootsuite checks for content.
Answer:
2.75, elastic.
Explanation:
Measure labor supply elasticity of Individual T's as follows :
Therefore, the elasticity of the labour supply of Individual T's is approx. of earnings per hour. <u>2.75</u>, meaning that the work supply of Person T's is <u>elastic</u> across this wage range
