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Estimate the value of loyal customer

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Reference no: EM133365020

Question

Estimate the value of a loyal customer of a loyal Volvo automobile owner. Assume the contribution margin is 0.35, the purchase price is $68,000, the repurchase frequency is every three years, and the customer defection rate is 25 percent. Do not round intermediate calculations. Round your answer to the nearest dollar.

Reference no: EM133365020

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