A cable company spends on average S600 to acquire a customer. Annual maintenance costs per customer-$45; record-keeping and billing costs basic service package-$30 per month. Typically, 40 percent of customers buy a premium package-$50 per month; 10 percent buy the superpremium package- $80 per month. The average discount rate provided to each customer is 12%. Over time, 80 percent of customers remain with the company from one year to the next. $30 per customer per annum. Price of a - 1. What is the average CLV for all customers?

A cable company spends on average S600 to acquire a customer. Annual maintenance costs per customer-$45; record-keeping and billing costs basic service package-$30 per month. Typically, 40 percent of customers buy a premium package-$50 per month; 10 percent buy the superpremium package- $80 per month. The average discount rate provided to each customer is 12%. Over time, 80 percent of customers remain with the company from one year to the next. $30 per customer per annum. Price of a - 1. What is the average CLV for all customers?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...

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Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?
SPANISH AIRPORT Inside the abandoned Spanish airport that cost £1billion to build An airport in Spain has been abandoned for years The Ciudad Real Airport opened in 2008, only for it to close three years later. The Ciudad Real Airport hoped to be an alternative to Madrid Airport. The airport, which was meant to handle overflow from Madrid’s Barajas airport, cost some €1.1 billion to build, including a large amount of public funding for infrastructure. The site is next to a town of just 72,000 people on the sparsely populated Castilian plain and lies more than 140 miles from Madrid. It was even named after Don Quixote, the deluded Castilian gentleman of Cervantes’s famous novel before wiser heads renamed it simply “Central”. Although launched by local private investors, the project has been fully supported by the regional government of Castilla La Mancha and was financed by Caja Castilla La Mancha (CCM), the regional savings bank, or caja. A huge Don Quixote-themed attraction was…
SPANISH AIRPORT Inside the abandoned Spanish airport that cost £1billion to build An airport in Spain has been abandoned for years The Ciudad Real Airport opened in 2008, only for it to close three years later. The Ciudad Real Airport hoped to be an alternative to Madrid Airport. The airport, which was meant to handle overflow from Madrid’s Barajas airport, cost some €1.1 billion to build, including a large amount of public funding for infrastructure. The site is next to a town of just 72,000 people on the sparsely populated Castilian plain and lies more than 140 miles from Madrid. It was even named after Don Quixote, the deluded Castilian gentleman of Cervantes’s famous novel before wiser heads renamed it simply “Central”. Although launched by local private investors, the project has been fully supported by the regional government of Castilla La Mancha and was financed by Caja Castilla La Mancha (CCM), the regional savings bank, or caja. A huge Don Quixote-themed attraction was…
SPANISH AIRPORT Inside the abandoned Spanish airport that cost £1billion to build An airport in Spain has been abandoned for years The Ciudad Real Airport opened in 2008, only for it to close three years later. The Ciudad Real Airport hoped to be an alternative to Madrid Airport. The airport, which was meant to handle overflow from Madrid’s Barajas airport, cost some €1.1 billion to build, including a large amount of public funding for infrastructure. The site is next to a town of just 72,000 people on the sparsely populated Castilian plain and lies more than 140 miles from Madrid. It was even named after Don Quixote, the deluded Castilian gentleman of Cervantes’s famous novel before wiser heads renamed it simply “Central”. Although launched by local private investors, the project has been fully supported by the regional government of Castilla La Mancha and was financed by Caja Castilla La Mancha (CCM), the regional savings bank, or caja. A huge Don Quixote-themed attraction was…
SPANISH AIRPORT Inside the abandoned Spanish airport that cost £1billion to build An airport in Spain has been abandoned for years The Ciudad Real Airport opened in 2008, only for it to close three years later. The Ciudad Real Airport hoped to be an alternative to Madrid Airport. The airport, which was meant to handle overflow from Madrid’s Barajas airport, cost some €1.1 billion to build, including a large amount of public funding for infrastructure. The site is next to a town of just 72,000 people on the sparsely populated Castilian plain and lies more than 140 miles from Madrid. It was even named after Don Quixote, the deluded Castilian gentleman of Cervantes’s famous novel before wiser heads renamed it simply “Central”. Although launched by local private investors, the project has been fully supported by the regional government of Castilla La Mancha and was financed by Caja Castilla La Mancha (CCM), the regional savings bank, or caja. A huge Don Quixote-themed attraction was…
Department of Health getting the highest executive budget this 2021 National Budget because of this COVID-19 pandemic. - What are the projects and programs that needed to be implement? Are these revenue expenditures or capital expenditures?- Is it for long term or by phase implementation?- Where are the locations of the projects? Urban areas or rural areas?- How long do you see the department getting the lion's share? Justify the forecast.
Manager Cafe "Blue Sky" is considering investing 2 (two) projects. Project X is an investment of $ 75,000 to replace a working but outdated cooling equipment. Project Y is a $ 150,000 investment to expand the dining facilities. Relevant cash flow data for the two projects over the expected 2 years are as follows: Project X Year 1 Year 2 Probability Cash Flow Probability Cash Flow 0.16 $0 0.08 $0 0.66 $50000 0.82 $50000 0.18 $100000 0.10 $100000 Project Y Year 1 Year 2 Probability Cash Flow Probability Cash Flow 0.50 $0 0.13 $0 0.50 $200000 0.74 $100000 0.13 $200000 Calculate: Expected value, standard deviation, and coefficient of variation for cash flows from each project. Compute: Risk-adjusted NPV for each project using a cost of capital of 15% for riskier projects, and 12% cost of capital for less risky projects. Which project is more…
Project Risk Analysis Sydney, Australia’s M5 East Tunnel was constructed under strict budgetary and schedule requirements, but given the massive traffic delays now hampering commuters, the requirements may have been excessive. Due to an inexpensive computer system with a high failure rate, the tunnel’s security cameras frequently fail, requiring the operators to close the tunnel due to inability to react to an accident, fire, or excessive pollution inside the tunnel. The tunnel was built to handle 70,000 vehicles a day, but it now carries 100,000, so any glitch can cause immediate traffic snarls. A managerial risk analysis, including the risk of overuse, might have anticipated these problems and mandated a more reliable set of computers once the costs of failure had been included. Required: As the project manager, discuss the risk management process you think might have identified the danger in using a cheap computer system Discuss the type of risk analysis approach you think would…
you are doing a bussiness plan for a cafe'. how will you write the financial projection for 3 different scenarios and assumptions?
Additional Information: If TWW proceeds with the project as originally planned, there is a 40% chance that controversy about the financial "gratuity" will damage its reputation and lose $500 million in future business opportunities. If TWW spends $100 million to contract with an outside bank to oversee cash payments, the probability of this continuing controversy will decline to 20%. Choice b: Proceed with the project and contract with an outside bank. Use the following questions to explain your decision - Answer the question as the Government Representative, Mayor's Office 1. How may the supply and demand of local real estate be impacted by these decisions? 2. How may the market price of local real estate be impacted by these decisions? Question Instructions: Answer each question based on the decisions your group made. Address each question from a different perspective (from part 3) and explain the rationale behind your decisions for each question. Each…
Peppers Lockdown produces keys for homes and cars. As Peppers planned for next year’s production,the company decided to implement a high-low system to forecast future costs. With total productionof 2,500,000 keys at a total cost of $10,000 in 2018, and total production of 3,000,000 keys at a totalcost of $20,000 in 2019, what is the variable cost per key?