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Suppose a Company Sells a Subscription Service

question 6

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Suppose a company sells a subscription service.Customers typically remain customers for 3 years, and they pay $20.00 per month for the service, which means $240.00 ($20.00 × 12 months) per year or $720.00 ($240.00 × 3 years) potential revenue from the customer.This is an example of:


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