Western Athletic Club International (WACI) owns and operates a chain of fitness clubs and is interested in estimating the CLV for new memberships....

Western Athletic Club International (WACI) owns and operates a chain of fitness clubs and is interested in estimating the CLV for new memberships. Practically all of WACI's costs are fixed costs. Meaning that, when a member pays his or her monthly dues, there are no variable costs associated with that payment and all the revenues go toward covering the fixed costs of the business (facilities, salaries, equipment, etc.). WACI's monthly membership dues are $55 per person. The average member keeps his or her membership active for 24 months.