What was Erin's CAC if she spent $5,000 on marketing and $2,000 on sales to gain 700 new customers?

To determine Erin's Customer Acquisition Cost (CAC), you need to calculate how much she spent in total on acquiring new customers and then divide that amount by the number of new customers gained.

In this case, Erin spent $5,000 on marketing and $2,000 on sales. When you add these amounts together, the total expenditure on acquiring new customers is:

$5,000 (marketing) + $2,000 (sales) = $7,000.

Next, you take this total amount and divide it by the number of new customers acquired, which is 700:

CAC = Total spending / Number of new customers

CAC = $7,000 / 700 = $10.

This means that for each new customer Erin acquired, she spent $10.

Therefore, the correct choice reflects this calculation accurately.