What are the contribution margins of each category of membership? Is the $50 membership profitable to the museum? (obtained through direct mail) You need to calculate the true cost of obtaining each member after taking their renewal rates into consideration. Should the museum charge $2 admission fee? Why or why not? The key is whether this fee will result in lost revenue from their target customers. Should they eliminating the 15% member discount for the gift shop? Why or why not? Do you have a better alternative? Please note that the key is price sensitivity of their target customers.