Estimate the value of a loyal customer of a loyal Volvo automobile owner. Assume the contribution margin is 0.27, the purchase price is $64,000, the repurchase frequency is every four years, and the customer defection rate is 26 percent. Do not round intermediate calculations. Round your answer to the nearest dollar

Estimate the value of a loyal customer of a loyal Volvo automobile owner. Assume the contribution margin is 0.27, the purchase price is $64,000, the repurchase frequency is every four years, and the customer defection rate is 26 percent. Do not round intermediate calculations. Round your answer to the nearest dollar

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section9.5: Multistage Decision Problems

Problem 19P

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