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Uop ISCOM 424 Week 4 Individual .pdf


Original filename: Uop ISCOM 424 Week 4 Individual.pdf
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Uop ISCOM 424 Week 4 Individual Assignment
Customer Lifetime Value Metric
Check this A+ tutorial guideline at
http://www.assignmentcloud.com/ISCOM424/ISCOM-424-Week-4-IndividualAssignment-Customer-Lifetime-Value-Metric
For more classes visit
http://www.assignmentcloud.com
Use the course materials supplement Customer
Lifetime Value Metric, found on your student Web
page, to calculate the lifetime value of a customer
who has recently contracted with Riordan
Manufacturing.
Customer Lifetime Value Metric
Read the scenario below, then use the table to
calculate customer lifetime value.
Scenario
Bilberry Beverages, Inc. is a newly acquired
Riordan Manufacturing customer. Bilberry offers

four flavors of berry soda. Each flavor requires its
own bottle. Bilberry needs six pallets per month
for each flavor. Pallets hold 700 bottles. Each
bottle costs Riordan 18¢ to produce and label.
Bilberry pays 38¢ per bottle, including shipping.
Riordan absorbs the shipping cost, which is $12
per pallet.
The average contractor remains a loyal customer
of Riordan Manufacturing for 7 years and losses
account for only 4% of total sales over the average
lifetime of these relationships.
Using these averages, and the figures provided in
the scenario, calculate customer lifetime value for
Riordan’s relationship with Bilberry Beverages,
Inc.


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