Question

A flower shop acquired 80 new customers last year. Costs in the marketing and sales areas were the following:

Marketing Costs = $1,200
Sales Costs = $9,000
Salaries = $87,000
What was the Customer Acquisition Cost?

Type a comma to separate the digits and type the $ symbol when you enter your answer as shown below:

Example: $15,300

Answer 1

To calculate the Customer Acquisition Cost, we need to add up the marketing and sales costs, and then divide by the number of new customers:

Total Acquisition Costs = Marketing Costs + Sales Costs + Salaries
Total Acquisition Costs = $1,200 + $9,000 + $87,000
Total Acquisition Costs = $97,200

Customer Acquisition Cost = Total Acquisition Costs / Number of New Customers
Customer Acquisition Cost = $97,200 / 80
Customer Acquisition Cost = $1,215

Therefore, the Customer Acquisition Cost was $1,215.

Answer 2

Using proportions, it is found that the Customer Acquisition Cost was of $1,215.

What is a proportion?

A proportion is a fraction of a total amount.

In this problem, the customer acquisition cost is the spending in sales divided by the number of customers added.

80 customers were added, considering costs of 1200 + 9000 + 87000 = $97,200, hence:

97200/80 = $1,215.