1. Business a) Given Pre-existing # of customers(100) -> Referees(10x) -> Joining Customers(25%) -> New Customers to Buyer Conversion Rate(0.5%), Money given to Referrer($25 per Referees), and Money Given to Buyers($1000). i) Find Customer Acquisition Cost. (It's worded differently) ii) Derive a Formula with variables. iii) What kind of impacts can each variable give to CAC? b) Say a company sells chair at $250. There are 50,000 ppl who visit the website and 2% of the customers buy chair during their visit. Profit margin is 27%. (In January) Time goes by and it's February. Company decides to do 10% discount and is expecting same amount of people will visit the website. What percent of "customer conversion rate" do we need in order to match the dollar amount profit value from January? (Fortunately, you don't have to think about time value of money.)