A Coffee Shop's Average Transaction Price Is $4, and the Contribution

question 27

Multiple Choice

A coffee shop's average transaction price is $4, and the contribution margin is 60 percent. A typical customer makes a purchase once a week or 52 weeks per year, and the management estimates the value of the loyal customer over the buying life cycle as $520. The customer defection rate is _____.

• A) less than or equal to 0.10
• B) more than 0.10 and less than or equal to 0.15
• C) more than 0.15 and less than or equal to 0.20
• D) more than 0.20 and less than or equal to 0.25

---

Definitions:

Union Movement

A social and political movement that advocates for the rights and interests of workers, often through the formation and operation of labor unions.

Industrial Growth

The increase in production and economic scale within the industrial sector, leading to the expansion of industries and manufacturing capabilities.

Urban Growth

The expansion of a city or metropolitan area, both in terms of population and physical size.

White Prejudices

A term referring to prejudiced attitudes and beliefs held by white individuals or societies against people of other ethnicities or races.