Golf Guide sells imprinted clothing and accessories for golfers through a catalog. To find new customers, Golf Guide sends a small catalog to names selected from mailing lists. The company mails out catalogs at a cost of $4,418 per thousand pieces mailed, and can expect a response rate of 6%. (So, for every thousand mailed, the company can expect a certain number of responses.) All responders become customers. Calculate the cost per customer acquired that is implied by these numbers. (Rounding: nearest penny.)
Show step by step how you got the answer.
| Customer acquired per thousand pieces mailed | 60 | =1000*6% |
| Total cost per thousand pieces mailed | 4418 | |
| Divide by Customers acquired | 60 | |
| Cost per customer acquired | 73.63 | =4418/60 |
Golf Guide sells imprinted clothing and accessories for golfers through a catalog. To find new customers,...