Question

Analyze how the value of a loyal customer (VLC) will change if the average customer defection rate varies between 15 and 40 percent (in increments of 5 percent), the frequency of repurchase varies between 3 and 9 times per year (in increments of 1 year), the average purchase price is $70 per visit and the contribution margin is 10 percent. Complete the table below for corresponding values of defection rate and repurchase frequency. Round your answers to the nearest cent.

Defection rate	Repurchase frequency
	3	4	5	6	7	8	9
0.15	$	$	$	$	$	$	$
0.20	$	$	$	$	$	$	$
0.25	$	$	$	$	$	$	$
0.30	$	$	$	$	$	$	$
0.35	$	$	$	$	$	$	$
0.40	$	$	$	$	$	$	$

Answer 1