A manufacturer of gear hobbers has a 30 percent customer retention rate. Their accounting department estimates the incremental contribution to profit and overhead as 20 percent. Customers purchase the workstations every two years at an average cost of $3,500. Determine the average value of a loyal customer.

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The Answer of A manufacturer of gear hobbers has a 30 percent customer retention rate. Their accounting department estimates the incremental contribution to profit and overhead as 20 percent. Customers purchase the workstations every two years at an average cost of $3,500. Determine the average value of a loyal customer.

A Manufacturer of Gear Hobbers Has a 30 Percent Customer