Determine the value of a loyal customer


Problem:

A family rents videos from a local video store. On average, they spend $80.00 a month (Hint: That's $80, twelve times per year.). The store's contribution margin is 45 percent and the average customer retention rate is 60 percent.

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Question: Determine the value of a loyal customer.

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Accounting Basics: Determine the value of a loyal customer
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