Number of referrals per period (n=n1+ n2) 5 of which, customers that joined due to the referral (n1) of which, customers that would have joined anyway (n2) Marketing cost per period (Mty) $30 Average gross margin (Aty) $78 3. 2.

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Chapter2: Building Blocks Of Managerial Accounting
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Consider a telecommunication service provider. You have the following quarterly data:
STATISTICS
TYPICAL CONSUMER
Number of referrals per period (n=n1+ n2)
5
of which, customers that joined due to the referral (n1)
3
of which, customers that would have joined anyway
(n2)
2
Marketing cost per period (Mty)
$30
Average gross margin (Aty)
$78
Cost of referral (aty)
$15
Acquisition cost savings (ACQ1ty and ACQ2ty)
$10
Yearly discount rate (r)
15%
Calculate CRV of a typical customer for one year (over 4 quarters).
Transcribed Image Text:Consider a telecommunication service provider. You have the following quarterly data: STATISTICS TYPICAL CONSUMER Number of referrals per period (n=n1+ n2) 5 of which, customers that joined due to the referral (n1) 3 of which, customers that would have joined anyway (n2) 2 Marketing cost per period (Mty) $30 Average gross margin (Aty) $78 Cost of referral (aty) $15 Acquisition cost savings (ACQ1ty and ACQ2ty) $10 Yearly discount rate (r) 15% Calculate CRV of a typical customer for one year (over 4 quarters).
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