Tire Manufacturer Firebridge Sells Tires to Retail Firm A

question 29

Multiple Choice

Tire manufacturer Firebridge sells tires to retail firm A.Average annual sales for firm A is $55,000.Average profit margin is 15%.The expected lifetime is 10 years.Using a discount rate of 10 percent,calculate the Customer Lifetime Value of firm A and choose the closest answer below:

• A)​$5,500
• B)​$50,693
• C)​$38,590
• D)​$25,675

---

Definitions:

Centers

Locations or points that are central within a larger area, often serving as focal points for activities or distribution.

Histogram

A graphical representation of the distribution of numerical data, where the data is grouped into bins or intervals.

Peaks

Points of maximum value or height in a distribution or dataset.

Interval Data

Data with meaningful amounts of difference between measurements but no true zero point, allowing for numerical operations like addition and subtraction.