Troista Mobile Accessories sells mobile apps on their Web site. If a customer spends on average, $12 per visit and visits the Web site 20 ti

Question

Troista Mobile Accessories sells mobile apps on their Web site. If a customer spends on average, $12 per visit and visits the Web site 20 times each year, what is the average nondiscounted gross profit during a customer’s lifetime? Given that Troista makes a margin of 60 percent on the average bill, with 25 percent of customers not returning each year.

in progress 0
Piper 2 weeks 2021-11-17T11:38:52+00:00 1 Answer 0 views 0

Answers ( )

    0
    2021-11-17T11:40:30+00:00

    Answer: The required average is $576.

    Step-by-step explanation:

    Since we have given that

    Percent of customers not returning each year = 25%

    Average customer lifetime = \dfrac{1}{0.25}=4\ years

    Percent of margin on the average bill = 60%

    Cost per visit = $12

    Number of times each year visited = 20 times

    So, Average expense by each customer per year = 12\times 20=\$240

    Average margin = 60% of 240 = 0.6\times 240=\$144

    Average non discounted gross profit during a customer’s lifetime is given by

    144\times 4=\$576

    Hence, the required average is $576.

Leave an answer

45:7+7-4:2-5:5*4+35:2 =? ( )