Amanufacturer of business copier workstations has a 75 percent customer retention rate. their accounting department estimates the incremental contribution to profit and overhead as 40 percent. customers purchase the workstations every three years at an average cost of $1,500.00. determine the average value of a loyal customer.

$792

Explanation:

Average value of a loyal customer can be calculated in following manner -

The value of a loyal customer (VLC) = P × (RF) × (CM) × (BLC)

Where,

P is the revenue per unit or average cost = $1,500

RF is the repurchase frequency or number of purchases per year = 1/3

                                                                                                              = 0.33

CM is contribution margin to profit = 40% or 0.40

BLC is buyer’s life cycle = 1 ÷ (1 - customer’s retention rate)

                                        = 1 ÷ (1 - 75%)

                                        = 1 ÷ (1 - 0.75)

                                         = 4 years

Therefore,

The value of a loyal customer (VLC):

= P × (RF) × (CM) × (BLC)

= $1,500 × (0.33) × (0.40 ) × (4)

= $792

if kj of heat is transferred o 1200 g liquid water at 36'c, what would the new temperature of the water be? (he specific heat capacity of liquid water is 4.186 j/g''c)

a. 15'c

b.100'c

c.51'c

d.36'c

how big are hotdogs, answer this or you get a dunce cap