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Snyder's Moving company has two segments of customer: Small Business (SB) and Residential. 10% of Snyder's 2,200 clients fall into both categories, using Snyder's
Snyder's Moving company has two segments of customer: Small Business (SB) and Residential. 10% of Snyder's 2,200 clients fall into both categories, using Snyder's as their mover of choice for both their business and personal needs. The remaining clients are split evenly between segments. A client who falls into one category will use Snyder's once every 3 years. Clients who fall into both categories use Snyder's twice every 3 years. SB moves cost 15% more to the clients than Residential moves due to additional insurance costs for Snyder's. The average profit Snyder's makes per move, regardless of which type, is $260. Snyder recently launched a marketing campaign to all SB-only clients to encourage them to use Snyder's for residential moves. 10% of recipients decided to do so. Assuming the campaign cost $500 to execute, how profitable was it? A $12,480 B $25,240 C $50,480 D $56,240 Snyder's Moving company has two segments of customer: Small Business (SB) and Residential. 10% of Snyder's 2,200 clients fall into both categories, using Snyder's as their mover of choice for both their business and personal needs. The remaining clients are split evenly between segments. A client who falls into one category will use Snyder's once every 3 years. Clients who fall into both categories use Snyder's twice every 3 years. SB moves cost 15% more to the clients than Residential moves due to additional insurance costs for Snyder's. The average profit Snyder's makes per move, regardless of which type, is $260. Snyder recently launched a marketing campaign to all SB-only clients to encourage them to use Snyder's for residential moves. 10% of recipients decided to do so. Assuming the campaign cost $500 to execute, how profitable was it? A $12,480 B $25,240 C $50,480 D $56,240
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