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A hair salon acquired 100 new customers last year. Costs in the marketing and sales areas were the following: Marketing costs= 1,000 Sales costs= 10,000 Salaries= 96,000 What was the customer acquisition cost? 0000 11,000 110 107,000 1,070

Question

A hair salon acquired 100 new customers last year.
Costs in the marketing and sales areas were the following:
Marketing costs= 1,000
Sales costs= 10,000
Salaries= 96,000
What was the customer acquisition cost?
0000
 11,000
 110
 107,000
 1,070

A hair salon acquired 100 new customers last year. Costs in the marketing and sales areas were the following: Marketing costs= 1,000 Sales costs= 10,000 Salaries= 96,000 What was the customer acquisition cost? 0000 11,000 110 107,000 1,070

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RaymondProfessional · Tutor for 6 years

Answer

### \$110

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## Step 1: Calculate the total costs for marketing and sales.<br />### Add the marketing costs and sales costs together to get the total marketing and sales costs:<br />$$\text{Total Marketing and Sales Costs} = \$1,000 + \$10,000 = \$11,000$$<br /><br />## Step 2: Compute the customer acquisition cost.<br />### Divide the total marketing and sales costs by the number of new customers acquired to get the customer acquisition cost:<br />$$\text{Customer Acquisition Cost} = \frac{\$11,000}{100} = \$110$$
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