A computer manufacturer currently has a 15 percent customer, Ask an Expert

Management Studies

A computer manufacturer currently has a 15 percent customer defection rate. Their accounting department estimates the incremental contribution to profit and overhead as 30 percent. Customers purchase computers every 4 years at an average cost of $1200.00. In an effort to reduce the defection rate, the company is improving both the quality computers and its post sale service. Determine the increase in the average value of a loyal customer if the defection rate drops to 5 percent.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93121543

Have any Question?Write your Review or question?

Related Questions in Operation Management

You are an independent management consultant and have been

You are an independent management consultant and have been approached by the CEO of Rador Ltd, Ms Benin. Rador Ltd has always prepared their annual sales forecast using estimates obtained from their sales director, Mr Po ...

Business decision case new haven corporation recently

Business Decision Case New Haven Corporation recently identified an investment opportunity involving the purchase of a patent that will permit the company to modify its line of CD recorders. The patent’s purchase price i ...

Assignment recipe for successevery individual approaches

Assignment : Recipe for Success! Every individual approaches life and situations differently. We all use communication as a means to express ourselves. However, communication is as much about listening as it is about tal ...

1 reep construction recently won a contract for the

1. Reep Construction recently won a contract for the excavation and site preparation of a new rest area on the Pennsylvania Turnpike. In preparing his bid for the job, Bob Reep, founder and president of Reep Construction ...

Evaluate how outdated motivation theories can lead to

Evaluate how outdated motivation theories can lead to ineffective and antiquated rewards systems, as noted by Bowey (2005). Analyze the role that culture as a component of compensation design plays in the creation of mot ...

1 to what extent are acuityrsquos and the container

1. To what extent are Acuity’s and the Container Store’s approach toward motivation consistent with need theories of motivation? Discuss. 2. To what extent is The Container Store’s pay and reward system consistent with e ...

1 write a short essay about the benefits of target and

1. Write a short essay about the benefits of Target and Walmart including Health Insurance, Employee Discount, Sick Day, Retirement / Stock Option, Vacation Day and Paid Time Off, Job Training. The benefits that Target h ...

1 what are the primary and secondary components of

1. What are the primary and secondary components of Chipotle’s value chain? Cite Sources. 2. Assume you are opening a new recreational facilities business called SafeHeaven, in a mid-size city in the United States, in yo ...

Reflective practice is crucial in education and becomes the

Reflective practice is crucial in education and becomes the foundation for ongoing growth and development as a professional. Reflect on how you plan to continue growing in your practice and utilize district, academic, or ...

Using pmbok 5e prepare five templates using specific

Using PMBOK 5e, prepare five templates using specific quality tools that could be used to plan, assure, and control quality in the family garden scenario. Choose from 1) flow charts, 2) check sheets, 3) Pareto diagrams, ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert