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PLEASE EXPLAIN WITH FORMULAS, TRYING TO LEARN THE CONCEPTS. THANK YOU.

BioHealth sells a 30-tablet bottle of its turmeric capsules online for $24. Its profit margin per bottle is 57%. The marketin

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Answer #1
CLV (Customer Lifetime Value)
=Annual Profit contribution per customer $164.16 =24 S.P*57% Profit Margin*12 months p.a
x no. of years that they remain a customer $2.00 =2 Years
- Initial cost of customer acquisition $16.56 =24 S.P*23% Discount*6 months*50% customers signing automatic plan
Expected CLV per new customer $311.76 =(164.16*2)-16.56
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