Question

If a firm spends 5,000 per eyar on advertising and attracts 50 new customers, what is the acquisition cost for each

a. 100 per customer
b. 20
c. 10
d. 50
e.500

Answer 1

The acquisition cost per customer is $100.

Step-by-step explanation:

The acquisition cost per customer can be calculated by dividing the total advertising spending by the number of new customers attracted. In this case, the firm spends $5,000 per year on advertising and attracts 50 new customers. Therefore, the acquisition cost per customer is $5,000 / 50 = $100.