Answer:
Average Customer Retention rate = 80%
Average Value of Sales per year per customer = $120
Average customer acquisition cost = Customer acquisition oriented market expenses per month/
number of new customers acquired per month
Average customer retention cost = $75
CLV =[1/(1- Average customer retention rate)] x (average value of sales per year per customer)-(average customer acquisition cost + average customer retention cost)
![= [1/(1-0.8)] x 120-(40+75)](https://tex.z-dn.net/?f=%3D%20%5B1%2F%281-0.8%29%5D%20x%20120-%2840%2B75%29)
=$485
A) Average customer retention rate =90%
B) Average value of sales per year per customer = $125
C) Average customer acquisition cost =$60
D) Average customer retention cost =$100
CLV = [1/(1- Average customer retention rate)] x (average value of sales per year per customer)-(average customer acquisition cost + average customer retention cost)
![= [1/(1-0.9)] x 125 - (60+100)](https://tex.z-dn.net/?f=%3D%20%5B1%2F%281-0.9%29%5D%20x%20125%20-%20%2860%2B100%29)
E) Customer Lifetime Value = 1090
Explanation:
Here are the spreadsheets.
Answer:
The correct answer is letter "B": property rights must be clearly assigned to the parties involved in the dispute.
Explanation:
Named after British lawyer and economist Ronald Coase (<em>1910-2013</em>) the Coase Theorem states when there are competitive markets and no transaction costs bargaining will lead to an efficient and mutually beneficial outcome. The theorem affirms that when property rights are defined and divided, parties will gravitate to the most efficient and beneficial outcome.
Answer:
Cash $60,000 (debit)
Investment Income $60,000 (credit)
Explanation:
It is Important to note that the Acquirer (Horicon Corp) is a Corporate.
The Acquisition of 25% of the common stock of Sheboygan Corp constitute an Asset for Horicon Corp since Economic Benefits are expected to be received from the Investment.
The Receipt of Dividends from these shares will constitute Investment Income and the entry is as follows :
Cash $60,000 (debit)
Investment Income $60,000 (credit)
<span>$104,500 * 0.04 = $4,180 - $665 = $3,515</span>