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These are sample practice MCQs created for exam preparation. These are NOT official exam questions.

MARKETING DASHBOARD: Total ad spend $180K, New customers acquired 1,200. FINANCE REPORT: Average first-year revenue per customer is $425. EXECUTIVE MEMO: "Customer acquisition must be profitable in year one." Is the customer acquisition strategy profitable in year one?

GMAT · 2022 · Data Insights
Question:
MARKETING DASHBOARD: Total ad spend $180K, New customers acquired 1,200. FINANCE REPORT: Average first-year revenue per customer is $425. EXECUTIVE MEMO: "Customer acquisition must be profitable in year one." Is the customer acquisition strategy profitable in year one?

Options

(A) Yes, with $330K net gain
(B) Yes, with $150K net gain
(C) No, with $90K net loss
(D) No, with $330K net loss
(E) Break-even at $0
Answer: (A) Yes, with $330K net gain

Explanation:
Total revenue from new customers = 1,200 × $425 = $510K. Net gain = $510K - $180K = $330K. Closest to option (A) $330K

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