The marketing and sales budget of Fisk Inc.is estimated to be $500 million and its marketing administration cost is estimated to be $120 million.The acquisition cost per customer is $400 and it is 10 times more than the retention cost per customer.If 320,000 customers are retained,what is the total number of new customers acquired by Fisk Inc.?

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The total marketing and sales budget is $500 million, and the marketing administration cost is $120 million. Therefore, the budget available for customer acquisition and retention is $500 million - $120 million = $380 million. The retention cost per customer is $400 / 10 = $40. The cost to retain 320,000 customers is 320,000 * $40 = $12.8 million. Thus, the budget left for acquiring new customers is $380 million - $12.8 million = $367.2 million. The acquisition cost per customer is $400, so the number of new customers acquired is $367.2 million / $400 = 918,000 customers.

The Marketing and Sales Budget of Fisk Inc