A manufacturer of laptop computers has a 75 percent customer retention rate. Their accounting department estimates the incremental contribution to profit and overhead as 35 percent. On average, customers purchase the laptop every two and a half years at an average cost of $750. Determine the average value of a loyal customer.

Explanation:

Retention rate = 75%

Contribution to profit and overhead = 35%

Purchase laptop every 2,5 years (1/2.5=0.4 per year)

Average cost = $750

Value of loyal customer =

= Price * Purchase frequency * Gross margin * 1/(1-Retention rate)

Value of loyal customer = 750*0.4*0.35*1/(1-0.75) = 750*0.4*0.35*1/0.25 = $420

The answer is $420

Explanation

Using the formula

Price × contribution margin × Average retention time × Customer retention rate

Price = $750

Contribution margin = 35%(35 ÷ 100)= 0.35

Average retention time = two and half years

Customer retention rate = 75% (1 - 0.75) = 0.25

750 0.35 × 1/2.5 × 1/0.25

= 750 × 0.35 × 0.4 × 4

= 420

Therefore the average value of a loyal customer is $420

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.