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MakcuM [25]
2 years ago
15

What is the maximum amount your firm can afford to spend to increase customer retention from 61 % to 78 %?

Business
1 answer:
sergij07 [2.7K]2 years ago
7 0

Answer:

$ 636.76

Explanation:

One of the ways firms increase their profits is through customer retention and to do this money must also be spent to continue satisfying the customers. So, without mincing words let's dive straight into the solution to the problem above.

STEP ONE:  determine the margin and use the value to calculate for Customer life time value.

Margin =  [o.f × a.o × r.m] - ycp= [ 1.9 × $527 × 0.6 ] - 44  = $556.78.

where o.f = order frequency, a.o = average order, r.m = retail markup, and ycp =  yearly cost of promotion.

Therefore, the Customer life time value at 61% retention rate is calculated as below;

Customer life time value at 61% retention rate = 556.78 × { 0.61/ 1 + 0.11 - 0.61}.  

Customer life time value at 61% retention rate = $679.2716.

Customer life time value at 78% retention rate = 556.78 × { 0.78/ 1 + 0.11 - 0.78}.

Customer life time value at 78% retention rate = $1316.03

STEP TWO:  determine the maximum amount your firm can afford to spend to increase customer retention from 61 % to 78 %.

Therefore, the maximum amount = Customer life time value at 78% retention rate - Customer life time value at 61% retention rate.

The Maximum amount = 1316.03 - 679.2716 = $ 636.7584 = $ 636.76

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ioda

The type of Critical Thinking Questions that Ivory should ask at this point are:

  • What are the assumptions?
  • what are the issues and the conclusions?
  • Are there fallacies in the reasoning?
  • How authentic is the data presented?

<h3>What are Critical Thinking Questions?</h3>

Critical  Thinking Questions are questions that make inquiries into the veracity of a claim.

They help the evaluator to maintain a logical and rational line of thoughts so that they are able to connect clearly the relationship between facts and ideas.

Learn more about Critical Thinking Questions at:
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2 years ago
If a letter is to be distributed to other people in addition to the recipient, a/an _______ notation is inserted at the bottom o
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The answer is D.
Copy is usually used to indicate the letter have been send to someone else
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3 years ago
Juanita and Sam attend a beach party and notice that the local beach appears to have a great deal more trash washed up on shore
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Answer:

The answer is talking to a local environmental group for solutions.

Explanation:

This option is the best one for Juanita and Sam to take since they both need someone who have more expertise in this field to help them determine the best solution to the problem that they encounter, which is sea trash. The other options are unsuitable because they do not provide direct impact (such as picketing the guilty factory), unrealistic (lobbying their elected representatives), or have been done (identifying the changes and problem).  

7 0
3 years ago
At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct labor hours. During the year,
andre [41]

Answer:

Part 1

$9.60

Part 2

$11,129

Part 3

Journal 1

Debit : Overheads $172,500

Credit : Equipment lease $ 6,800

Credit : Depreciation on building 19,340

Credit : Indirect labor 90,400

Credit : Utilities 14,560

Credit : Other overhead 41,400

<em>Being overheads incurred</em>

Journal 2

Debit : Work In Process $173,760

Credit : Overheads $173,760

<em>Being overheads applied</em>

Part 4

under-applied overheads is $1,260

Part 5

$636,860

Explanation:

Overhead rate = Budgeted Overheads ÷ Budgeted Activity

                        = $129,600 ÷ 13,500

                        = $9.60

Total cost (Job K456)  = $2,750 + $5,355 + $3,024 = $11,129

Actual Overheads = $ 6,800 + $19,340 + $90,400 + $14,560 + $41,400 = $172,500

Applied overheads = 18,100 x $9.60 = $173,760

Since, Actual Overheads < Applied overheads, overheads have been under-applied. Amount of under-applied overheads is $1,260 ($173,760 - $172,500)

Under-applied overheads are added to cost of goods sold. Therefore, adjusted cost of goods sold will be $636,860 ($635,600 + $1,260)

7 0
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Sue, a secretary goes to the storeroom to get a box of paper for her department. This is a task she's performed without problem
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Answer:

B. Sue is entitled to Workers' Compensation even though her employer was not negligent.

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Sue is performing her normal duties that is required by her being a secretary when she was injured. So the employer cannot be said to be negligent in allowing her carry paper for her unit.

She will not be able to sue for employer for her injuries.

However when an employee is injured they are entitled to Worker's compensation and paid time off work.

This is given to employees even when the employer is not negligent.

Sue can get the Worker's compensation for her back treatment.

7 0
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