Question

Linda's company acquired 6,000 new customers last year. They spent $40,000 in marketing costs and $20,000 in sales costs. What is Linda's customer acquisition cost (CAC)? 

o o o o
$100 Incorrect Correct
$20 Incorrect Correct
$10 Incorrect Correct
$75 Incorrect Correct

Answer 1

CAC = (marketing + sales) / new customers = (40,000 + 20,000) / 6,000 = 60,000 / 6,000 = $10 per customer.