johns company acquired 5,000 new customers last year. they spent $20,000 in marketing costs and $15,000 in…

johns company acquired 5,000 new customers last year. they spent $20,000 in marketing costs and $15,000 in sales costs. what is johns customer acquisition cost (cac)?

johns company acquired 5,000 new customers last year. they spent $20,000 in marketing costs and $15,000 in sales costs. what is johns customer acquisition cost (cac)?

Answer

Explanation:

Step1: Calculate total acquisition cost

Total cost = Marketing cost+Sales cost Total cost = $20000 + 15000=$35000$

Step2: Calculate customer acquisition cost (CAC)

CAC = $\frac{\text{Total cost}}{\text{Number of new - customers}}$ Number of new - customers = 5000 CAC = $\frac{35000}{5000}=$7$

Answer:

$7$