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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
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