Compute current annual profit
Overview
This question evaluates numerical proficiency in financial arithmetic, unit-aware quantitative reasoning, and per-customer business-metric computation within a loyalty program context.
Capital One
Oct 13, 2025, 9:49 PM
Data Scientist
Technical Screen
Statistics & Math
0
0
Loyalty Program Profitability Calculation
A loyalty program has 2,000,000 customers.
Revenue per customer (per year):
- Annual membership fee: $50
- Commission: 1% on average spending of $500 per month
Costs (per year):
- Fixed maintenance cost: $250,000,000
- Variable cost: $5 per customer
Assume 12 months in a year.
Compute and show your work with units:
(a) Total annual revenue
(b) Total annual cost
(c) Total annual profit (revenue − cost)
(d) Profit per customer
Solution
Login required
Show