What is the necessary margin as a percent of sales to


The customers for your company purchase, on average, $ 334 per year. Your retention rate is 61 % and your firm uses a discount rate of 12 %. Acquisition costs are $ 114 . Finally, your firm incurs marketing communication/promotion costs of $ 42 per customer per year. What is the necessary margin (as a percent of sales) to breakeven? In other words, at what margin (as a percent of sales) is CLV = 0? Record your answer as a percentage, rounded to one decimal place.

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Financial Management: What is the necessary margin as a percent of sales to
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