A manufacturer of business copier workstations has a 75 percent customer retention rate. Their accounting department estimates the incremental…

A manufacturer of business copier workstations has a 75 percent customer retention rate. Their accounting department estimates the incremental contribution to profit and overead as 40 percent. Customers purchase the workstations every three years at an average cost of $1,500.00. Determine the average value of a loyal customer.

 
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