Use the Excel template VLC to find the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $75 pervisit, the frequency of repurchase is four times per year, the contribution margin is 15 percent, and the average customer defection rate is 25percent? Round your answer to the nearest dollar.$ Revenue per unitt contribution margin to profit and overheadRepurchase frequency (purchases/year)Defection rateBuyer's life cycleVLC$100.0050.0%0.250.42.50$31.25

The Average Value of a Loyal Customer (VLC) is a calculation that businesses use to determine the…

Answered: Use the Excel template VLC to find the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter8: Evolutionary Solver: An Alternative Optimization Procedure

Section8.6: Fitting An S-shaped Curve

Problem 9P

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Use the Excel template VLC to find the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $75 per visit, the frequency of repurchase is seven times per year, the contribution margin is 10 percent, and the average customer defection rate is 25 percent? Round your answer to the nearest dollar. $
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