What customer life time value for record stores to disktable


Problem: Record stores buy a lot of DiskTable's vinyl record cleaning supplies. DiskTable earns an average 33% contribution margin as percent of revenue on these purchases. DiskTable spends an average of $920 to acquire one record store as a new customer, and spends $428 per year on retaining each of these customers, leading to an annual retention rate of 87%. The typical record store customer places 10 orders per year. Average revenue for DiskTable is $760 per order. If DiskTable applies a 12% discount rate to this business, what is the CUSTOMER LIFETIME VALUE of ONE of these record stores to DiskTable. (Rounding: whole dollar.)

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Accounting Basics: What customer life time value for record stores to disktable
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