Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tess is the development manager for the Isabelle Stewart Gardner Museum in Boston, working on a new donor recruitment campaign. She was trying to decide
Tess is the development manager for the Isabelle Stewart Gardner Museum in Boston, working on a new donor recruitment campaign. She was trying to decide which type of donor to cultivate.
- Her first choice was a younger, arts active woman living in Boston. This type of woman was likely to give insmaller increments, about $300 per year, but, given her young age, could be expected to donate to the museum for the next 10 years. This type of donor costs $100 to acquire.
- Her other choice was an elderly, charitably inclined, suburban woman. This type of woman gavebig gifts, on average around $1,000 per year, but only could be counted on to give to the museum for 3 years. This type of donor requires a bit more attention, so it costs $250 to acquire.
Tess also spends $0.25 for every donation dollar received,in variable costs.
What is the DOLLAR DIFFERENCE between the younger donor's and the older donor's CLV?
Group of answer choices
$150
$250
$175
Both donors have the same CLV
$112.50
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started