What is Sarah's CAC if she spent $30,000 on marketing and $15,000 on sales to acquire 5,000 new customers?

To calculate Sarah's Customer Acquisition Cost (CAC), you need to find the total expenses incurred for acquiring new customers and then divide that by the total number of new customers acquired.

In this scenario, Sarah spent a total of $30,000 on marketing and $15,000 on sales. First, you add these two amounts together to get the total spending on customer acquisition:

Total spending = Marketing expenses + Sales expenses

Total spending = $30,000 + $15,000 = $45,000

Next, you divide this total spending by the number of new customers Sarah acquired, which is 5,000:

CAC = Total spending / Number of new customers

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

Thus, Sarah's CAC is $9, which reflects the cost incurred by her business to acquire each new customer. A lower CAC generally indicates a more efficient customer acquisition process.