Determine the increase in the average value of a loyal


A computer manufacturer currently has a 15 percent customer defection rate. Their accounting department estimates the incremental contribution to profit and overhead as 30 percent. Customers purchase computers every 4 years at an average cost of $1200.00. In an effort to reduce the defection rate, the company is improving both the quality computers and its post sale service. Determine the increase in the average value of a loyal customer if the defection rate drops to 5 percent.

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Operation Management: Determine the increase in the average value of a loyal
Reference No:- TGS02927529

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