If Johns company spent $10,000 in marketing and $6,000 in sales to acquire 2,000 new customers, what is his Customer Acquisition Cost (CAC)?

To determine the Customer Acquisition Cost (CAC), you need to combine the total marketing and sales expenses and then divide that total by the number of new customers acquired. In this scenario, John's company spent $10,000 on marketing and $6,000 on sales, resulting in a total expenditure of $16,000.

The formula for CAC is:

CAC = (Total Marketing Costs + Total Sales Costs) / Number of New Customers

So, in this case:

CAC = ($10,000 + $6,000) / 2,000 = $16,000 / 2,000 = $8

Thus, the correct answer is $8, confirming that option B is indeed the correct choice. This demonstrates the effectiveness of spending on marketing and sales relative to the number of customers acquired, and helps businesses calculate their investments in growth accurately.