The Owner of a Pet Grooming Salon Is Striving to Determine

question 57

Multiple Choice

The owner of a pet grooming salon is striving to determine the customer equity of a customer relating to the purchase of pet products and services offered by the salon.Which of the following would be a step the owner of this pet grooming salon would complete to determine this information?

• A)Determine the age of the pet to estimate how much longer this customer may need the services of the salon.
• B)Compare investments made by the salon owner in acquiring the customer to the total amount of all financial sales made by the customer.
• C)Ask the customer if s/he is planning on getting any new pets.
• D)Investigate how many other pet grooming salons are within five miles of this salon to determine the likelihood of this pet owner returning to this salon.
• E)Compare investments made by the salon owner to retain this customer to the total amount of taxes the salon owner pays.

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Definitions:

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts.

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Liquidity Ratio

Financial metrics that measure a company's ability to meet its short-term obligations using its most liquid assets.