Problem: What is the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $65 per visit, the frequency of repurchase is every month, the contribution margin is 21%, and the average customer defection rate is 22%? If a continuous improvement goal is set of a 18% defection rate next year and 14% two years from now, what are the revised VLCs over their average buying life? Do not round intermediate calculations. Round your answers to the nearest dollar.
For defection rate = 22%, VLC = $
For defection rate = 18%, VLC = $
For defection rate = 14%, VLC = $