A Manufacturer of Business Copier Workstations Has a 75 Percent

Multiple Choice

A manufacturer of business copier workstations has a 75 percent customer retention rate. Their accounting department estimates the incremental contribution to profit and overhead as 40 percent. Customers purchase the workstations every three years at an average cost of $1,500. The average value of a loyal customer is _____.

A) more than $200 and less than or equal to $300
B) more than $300 and less than or equal to $400
C) more than $400 and less than or equal to $500
D) more than $500