Roger loves Qdoba’s and eats there three times a week. He spends an average of $
ID: 3196569 • Letter: R
Question
Roger loves Qdoba’s and eats there three times a week. He spends an average of $9 while he is there. Increasingly, the restaurant is dirtier and dirtier, the parking lot is a mess, and the staff is scruffy and unkept. He decides that he is not going to return to Qdoba’s. Roger is a big talker and tells 50 people at the company BBQ about the situation at Qdoba’s. 25 of the 50 people that heard the story repeat it, and they each tell 5 more people. Assume 25% of the total number of people that have heard/been a part of the story discontinue business at Qdoba. Also assume that each person who discontinues business at Qdoba’s eats there three times per week, spending $9.00 per visit. How much does Qdoba’s stand to lose in a one year period by upsetting this one customer?
Explanation / Answer
Robert's monthly expenses at qdoba's = 3×4×9 = 108$
Robert's yearly expenses at qdoba's= 108×12 = 1296$
No. Of people that have heard/been part of the story = 1+50+(25×5) = 176
Total no. Of people that have discontinue business at qdoba's= (176×25)÷100 = 44
Yearly expense of one customer at qdoba's = 1296$
Qdoba loses 44 customers by upsetting Roger and qdoba's loss= 1296×44 =57024$
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.