A Guest at Raphael's Four-Star Italian Restaurant Generally Spends $150

Multiple Choice

A guest at Raphael's Four-Star Italian Restaurant generally spends $150 on a meal. Most of Raphael's customers are from nearby localities and eat at the restaurant twice a month. If the restaurant's margin is 60 percent, and a loyal customer is estimated to be worth $4,000, determine the average defection rate.

A) Less than or equal to 0.15
B) More than 0.15 and less than or equal to 0.20
C) More than 0.20 and less than or equal to 0.25
D) More than 0.25