Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Get accurate and detailed answers to your questions from a dedicated community of experts on our Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.
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
We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.
