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hard20 pts · first answer countsunit-economicspricing

Discount for an annual contract

Option A: $1,000 per month, monthly billing, 3% monthly churn. Option B: annual contracts at 15% off ($850 per month) that cut churn to 1.5% per month. Gross margin is 80%. Using LTV = monthly gross margin / monthly churn, which is better?

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