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sveticcg [70]
3 years ago
12

A cable company spends, on average, $ 600 to acquire a customer. Annual maintenance costs per customer are $ 45. Annual record-k

eeping and billing costs are $ 30 per customer. While the price of the basic service to customers is $ 30/month, 40% of customers buys the premium package at $ j50/month and 10% buy the superpremium package at $ 80/month. Over time, 80% of all customers remains with the company in the long run. The firm uses a discount rate of 8%. What is the average CLV for all customers?
Business
1 answer:
tangare [24]3 years ago
6 0

Answer:

Average customer life value

CLV = 1260

Explanation:

Gross Margin \times\frac{retention}{1+discount-retention} )= CLV

Fis, we will calcualteteh gross margin.

For that we need the revenue:

We will calculate the average revenue per year:

50%  30 dollars per month = 180

40%  50 dollars per month = 240

10%   80 dollars per month =  96

average annual revenue per customer: 516

now we ill calcualte the gross margin:

revenue           516

maintenance   (45)

administrative (30)

gross margin   441

441 \times\frac{0.8}{1+0.08-0.80} )= CLV

CLV = 1260

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Answer:

Explanation:

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2 years ago
The primary goal of financial management is to: a. maximize current dividends per share of the existing stock.b. maximize the cu
tangare [24]

Answer:

The correct answer is letter "B": maximize the current value per share of the existing stock.

Explanation:

Financial management collects several strategies to add value to the company in the long-term. This could be achieved by generating revenue sustainably and increasing the value per share of the firm's stock which boosts the value of the overall entity in the market.

<em>One of the most important goals financial management has is to maximize the stakeholders' wealth.</em>

6 0
2 years ago
On January 1, 2019, Oriole Company purchased the following two machines for use in its production process.
Zarrin [17]

Answer and Explanation:

The journal entries are shown below:

1  Equipment   $53,420

     To Cash  $53,420

(Being the equipment is purchased for cash is recorded)

The computation is given below:

= Cash price of machine + sales tax + shipping cost + insurance during shipping + installation and testing cost

= $49,500 + $3,650 + $100 + $60 + $110

=  $53,420

2. Depreciation expense $9,614

      To Accumulated Depreciation - Equipment  $9,614

(Being the depreciation expense is recorded)

The computation is shown below:

= ($53,420 - $5,350) ÷ ( 5 years)

= $9,614

5 0
3 years ago
Cash 30,000 Accounts receivable 65,000 Inventory 72,000 Marketable securities 36,000 Prepaid expenses 2,000 Intangible assets 40
lyudmila [28]

Answer:

2.7 times

Explanation:

The computation of the current ratio is shown below:

Current ratio = Current assets ÷ Current liabilities

where,

Current assets = Cash + account receivable + inventory + marketable securities  + prepaid expense

= $30,000 + $65,000 + $72,000 + $36,000 + $2,000

= $205,000

And, the current liabilities is

- Account payable + accrued liabilities + short term note payable

= $40,000 + $7,000 + $30,000

= $77,000

So, the current ratio is

= $205,000 ÷ $77,000

= 2.7 times

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Why do marshmallows taste so good!
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Because they are made out of pig feet
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3 years ago
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