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Aleks [24]
3 years ago
5

Which of the following is the formula for calculating the lifetime value of a​ customer?

Business
1 answer:
Nadya [2.5K]3 years ago
3 0

The formula for calculating the lifetime value of a​ customer the amount a person will spend MINUS the cost to maintain the relationship

<u>Explanation:</u>

Any company must measure the customer lifetime value for its success. Customers are the important factor that decides the growth of any business. They play an important role of buying the goods and services produced by any business. It is required to know how much it costs to attain new customers than retaining the older customers.

By measuring the CLTV, a company can make better decisions like the goals related to marketing, reduction in the cost related to acquisition, customer retention,etc. CLTV can be measured by subtracting the  amount spent by a customer  from the total cost that is spent in maintaining the relationship with that customer.

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g An automobile dealer expects to sell 529 cars a year. The cars cost $11,000 plus a fixed charge of $500 per delivery. If it co
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Answer:

Order size = 23 cars

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The economic order quantity (EOQ) is the order size that reduces the balance of holding and ordering cost. It is to be noted that at EOQ, the carrying cost is equal to the holding cost.

The EOQ is computed as shown below;

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EOQ = √ 2 × 500 × 529 / 1,000

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