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Troista Mobile Accessories sells mobile apps on their Web site. If a customer spends on average, $12 per visit and visits the Web site 20 times each year, what is the average nondiscounted gross profit during a customer's lifetime? Given that Troista makes a margin of 60 percent on the average bill, with 25 percent of customers not returning each year.

Respuesta :

Answer: The required average is $576.

Step-by-step explanation:

Since we have given that

Percent of customers not returning each year = 25%

Average customer lifetime = [tex]\dfrac{1}{0.25}=4\ years[/tex]

Percent of margin on the average bill = 60%

Cost per visit = $12

Number of times each year visited = 20 times

So, Average expense by each customer per year = [tex]12\times 20=\$240[/tex]

Average margin = 60% of 240 = [tex]0.6\times 240=\$144[/tex]

Average non discounted gross profit during a customer's lifetime is given by

[tex]144\times 4=\$576[/tex]

Hence, the required average is $576.

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