Homework Answers
Number of new customers acquired = 70000
Spent on new customer acquisition = $1400000
Average acquisition cost = Spent on new acquisition / number of new customers = 1400000/70000 = $20 per customer
Number of customers retained = 100000
Retention costs = $400000
Average retention cost = Retention costs / number of customers retained = 400000/100000 = $4 per customer
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