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TABLE: Sales Channel Analysis | Channel | Revenue ($M) | CAC ($) | LTV ($) | Conversion Rate | Direct: $45M, $125, $980, 8.5% | Partner: $38M, $95, $720, 6.2% | Online: $52M, $68, $650, 4.8% | Retail: $41M, $180, $1,240, 11.3%. Which channel has the highest LTV:CAC ratio?

GMAT · 2021 · Data Insights
Question:
TABLE: Sales Channel Analysis | Channel | Revenue ($M) | CAC ($) | LTV ($) | Conversion Rate | Direct: $45M, $125, $980, 8.5% | Partner: $38M, $95, $720, 6.2% | Online: $52M, $68, $650, 4.8% | Retail: $41M, $180, $1,240, 11.3%. Which channel has the highest LTV:CAC ratio?
Question Image

Options

(A) Direct
(B) Partner
(C) Online
(D) Retail
(E) Online and Partner tied
Answer: (C) Online

Explanation:
LTV:CAC ratios: Direct = $980/$125 = 7.84; Partner = $720/$95 = 7.58; Online = $650/$68 = 9.56; Retail = $1,240/$180 = 6.89. Online has highest ratio at 9.56.

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