Mkt Math questions:
Do the following in MS Word document. Show all work where necessary. Follow word limit rules. (marketing math)
Q1. Chick-fil-A restaurants want to find out the lifetime value of their satisfied and highly satisfied consumers. A satisfied consumer visits Chick-fil-A 3 times a month and spends $9 each time. On average this type of consumer purchases products from Chick-fil-A for 4 years. A highly satisfied consumer visits Chick-fil-A 5 times a month and spends $12 during each visit. On average a highly satisfied consumer purchases products from Chick-fil-A for 8 years. Calculate the lifetime value of (i) a satisfied consumer; and (ii) a highly satisfied consumer (show your work step by step). What is the implication of this lifetime value calculation? (100 words word limit in total for all 3 sub-questions related to Chick-fil-A)
Q2. A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI. The cost per unit is $18 and the company expects to sell 50,000 units in the first year. Calculate the company's target-return price for this product (word limit: 50 words)
Q3. A marketer wants to market a product. The unit variable cost for producing this product is $16. The fixed cost is $400,000. The marketer expects to sell 80,000 units of the product and wants to earn a 30 percent markup on sales. How much should the markup price be for this product? (word limit: 50 words)