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Verizon spends an average of $400 to acquire a customer.
Annual maintenance costs is $35/customer.Record-keeping and billing costs are $30 per customer per annum.The price of a basic service is $20 per month.
30% of customers buy an upgrade package at $40 per month,10% buy the unlimited package at $70 per month.Over time, 70% of customers remain with the company from 1 year to the next.
Please show calculations:
a) What is the lifetime value of an average customer?
b) What is the lifetime value of of the unlimited customer?
Keshena Co. borrows $170,000 cash on November 1, 2009, by signing a 120-day, 7% note with a face value of $170,000. How much interest expense results from this note in 2009?
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