Answer:
Customer Lifetime Value
Explanation:
Customer Lifetime Value is a measure of how much amount of money a customer spends on your business/products/services over the course of his whole lifetime.
It is a predictor of how well you are doing to retain your existing customers.
Why is it important?
suppose you spend $10 to advertise your product (belt) and a customer buys 5 belts on average every year for 15 years. You get $12 profit for each belt sold.
$
Subtract the advertising cost
$ This is your customer lifetime value
Now imagine what would have happen if we had to sell these belts to 75 different customers?
The advertising cost to attract 75 customers would have been too much and hence net profit and customer lifetime value would be very less.
$
$
This is why customer lifetime value is important and businesses focus on retaining their customers for longer periods.
Answer:
(a) 65.22%
(b) $28,800; $38,400; $9,600
Explanation:
Total cost:
= variable cost + fixed cost
= (12,000 × 0.90) + 18,000
= 28,800
Total Revenue:
= quantity of cupcakes sold × selling price of each cupcake
= 12,000 × 3.2
= 38,400
Profit:
= Total revenue - Total cost
= 38,400 - 28,800
= 9,600
Break even sales:
= Fixed cost ÷ contribution margin
= 18,000 ÷ (3.2 - 0.90)
= 7,826.087
Break even volume in capacity:
= Break even sales ÷ Cupcakes produced
= 7,826.087 ÷ 12,000
= 65.22%
The best theory which could be used in telling us why there is more and more tattling in the school-age group would most likely be either behavioral or cognitive - so A or B. However, it's most likely that the correct answer would be A as behavioral theories of behavior seem to be more effective for discovering such things.
Answer:
$100
Explanation:
The inherent value of a share or option or any other asset which an investor expects to have. In options it refers to the difference between it's current and the strike price.
The intrinsic value of options is calculated using the following formula:
Intrinsic value of option = Number of share options × ( Market price of the stock on the date of the grant - exercise price of the share option )
Intrinsic value of option = 100 × ( $10 - $9 )
Intrinsic value of option = 100 × $1
Intrinsic value of option = $100
So, the intrinsic value of the call option at the time of the initial investment was $100.
Answer:
Explanation:
The cost of the car = $40,000
Down payment = $5,000
Therefore loan amount on the car = Cost of the car - Down payment
= $40,000 - $5,000
= $35,000
But loan repayment starts from 13th months; therefore there are 12 months or 1 year for which interest amount will be added with the total loan amount
Total loan amount after one year = $35,000 * (1+6%) ^1 = $37,100
Now we can use PV of an Annuity formula to calculate the monthly payment of car loan
PV = PMT * [1-(1+i) ^-n)]/i
Where PV = $37,100
PMT = Monthly payment =?
n = N = number of payments = 60 months
i = I/Y = interest rate per year = 6%, therefore monthly interest rate is 6%/12 = 0.5% per month
Therefore,
$37,100 = PMT* [1- (1+0.005)^-60]/0.005
PMT = $37,100/51.72
= $717.38
Therefore correct answer is option A. $717.38
