You are trying to attract new customers that you feel could become repeat customers. The average price of the items you sell is $93 with a $70 variable cost. Your monthly interest rate is 2.1 percent. Your experience tells you that 10 percent of these customers will never pay their bill. What is the value of a new customer who does not default on their bill?
A) $986
B) $1,095
C) $2,617
D) $3,333
E) $4,429

Question

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The Answer of You are trying to attract new customers that you feel could become repeat customers. The average price of the items you sell is $93 with a $70 variable cost. Your monthly interest rate is 2.1 percent. Your experience tells you that 10 percent of these customers will never pay their bill. What is the value of a new customer who does not default on their bill?
A) $986
B) $1,095
C) $2,617
D) $3,333
E) $4,429

You Are Trying to Attract New Customers That You Feel