Determine the increase in the average value

Assignment Help Operation Management

Reference no: EM1383948

A computer manufacturer currently has a 15 percent customer defection rate. Their accounting department estimates the incremental contribution to profit and overhead as 30 percent. Customers purchase computers every four years at an average cost of $1,200.00. In an effort to reduce the defection rate, the company is improving both the quality of its computers and its post-sale service. Determine the increase in the average value of a loyal customer if the defection rate drops to 5 percent

Reference no: EM1383948

Questions Cloud

What is the customer defection rate : A coffee shop's average transaction price is $3, the contribution margin is 60 percent, the typical customer makes a purchase once a week or 52 weeks per year

Magnitude and the direction of two shafts at axis : The two shafts a speed-reducer unit are subjected to couples of magnitude M1 = 18 N · m and M2 = 7.5 N · m, respectively. Replace the two couples with a single equivalent couple, specifying its magnitude and the direction of its axis.

Ouestion on reliability and operational validity : A planner wants to assess road quality. He sends a questionnaire to a sample of residents and asks them to evaluate road surfaces, repair quality, and amount of traffic.

Population in hardy weinberg equilibrium : A sunflower population in Hardy-Weinberg equilibrium has the given allele frequencies for petal color: 0.75 dominant, 0.25 recessive.

Determine the increase in the average value : A computer manufacturer currently has a 15 percent customer defection rate. Their accounting department estimates the incremental contribution to profit and overhead as 30 percent. Determine the increase in the average value of a loyal customer if ..

Conceptualization and measurement of leadership : How would you operationally define the concept of "leadership?" Give one instance of "leadership in action" that is observable to help illustrate your definition of the concept.

Phd proposal dissertation topic : The premise of the study is to get recognize if personnel professionalism prevent clients from seeking follow-up for their health needs because of attitudes and treatment from workers.

Determining the overturning moment of silt and water : Assuming that silt is equivalent to a liquid having a density of 1760 kg/m 3 , determine the overturning moment of silt and water about point A.

Study on community providers : The project is to do study on community providers who aid families with resources through their agency. What I have observed in working in the field of Social Work

User Account

All Pages