Sarah spent $30,000 in marketing and $15,000 in sales costs. If she acquired 5,000 new customers, what was her Customer Acquisition Cost (CAC)?

To calculate the Customer Acquisition Cost (CAC), you need to add all expenses related to acquiring customers, and then divide that total by the number of new customers acquired. In this scenario, Sarah spent a total of $30,000 on marketing and $15,000 on sales costs.

First, summing these expenses gives a total acquisition cost of $30,000 + $15,000 = $45,000. Next, since she acquired 5,000 new customers, you would divide the total acquisition cost by the number of customers:

CAC = Total Acquisition Cost / Number of Customers

CAC = $45,000 / 5,000 = $9

This calculation shows that the cost to acquire each customer is $9. Therefore, the correct answer is reflective of the average expenditure Sarah incurred for each new customer. Understanding this calculation is crucial for assessing the efficiency of marketing and sales strategies in a business context.