Homework answers / question archive / An internet service provider charges $19

An internet service provider charges $19

Arts

Share With

---

An internet service provider charges $19.95 per month. If the firm cuts retention spending from $6 to $3 annually, attrition is expected to go up 1% per month. Should they do it?

Variable = $1.50 per customer per month

Marketing spending is $6/year

Retention rate = .995%

M= 18.45

R = .50

d= .01

CLV = $1209