Discover how IDNLearn.com can help you find the answers you need quickly and easily. Ask any question and receive timely, accurate responses from our dedicated community of experts.
Sagot :
Answer:
The correct option is A. $3
Explanation:
The customer retention cost is determined by cosnidering the number of customer retained at the end of the month; and the value used over the customers.
It is determined as follows:
[tex]\begin{aligned}\text{Customer Retention Cost}&=\frac{\text{Value of Free Dinners Redeemed}}{\text{Number of Customer Retained}}\\&=\frac{\$240}{80}\\&=\$3\\ \end{aligned}[/tex]
[tex]\begin{aligned}\text{Number of Customer Retained}&=\text{Number of Customers at End of Month}\\-&\text{Number of New Customers}\\&=120-40\\&=80\end{aligned}[/tex]
Assuming a local restaurant prides itself in having a high number of return customers the Customer Retention Cost will be $3
Using this formula
Customer Retention Cost=Value of Free Dinners Redeemed/Number of Customers at End of Month - Number of New Customers
Where:
Value of Free Dinners Redeemed=240
Number of Customers at End of Month=120
Number of New Customers=40
Let plug in the formula
Customer Retention Cost=240/(120-40)
Customer Retention Cost=240/80
Customer Retention Cost=$3
Inconclusion assuming a local restaurant prides itself in having a high number of return customers the Customer Retention Cost will be $3
Learn more here:
https://brainly.com/question/13187124
Thank you for using this platform to share and learn. Don't hesitate to keep asking and answering. We value every contribution you make. For trustworthy and accurate answers, visit IDNLearn.com. Thanks for stopping by, and see you next time for more solutions.
