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Suppose the Following Information: the Cost of a Full Page

question 223

Multiple Choice

Suppose the following information: The cost of a full page color ad in the U.S.national edition of The Wall Street Journal (newspaper) is $312,283 and its U.S.audience size is 1,566,027.The cost of a full page color ad in the U.S.national edition of USA Today (newspaper) is $242,600 and its U.S.audience size is 1,981,016.The cost of a full page color ad in the U.S.national edition of Bloomberg Businessweek (magazine) is $156,800 with an audience size of 980,000.The cost of a full page color ad in the U.S.national edition of Sports Illustrated (magazine) is $392,800 with an audience size of 3,150,000.The cost of a 30-second ad on the most recent Super Bowl (television) is $3,250,000 and has an audience size of 112,500,000.Using this information,which has the HIGHEST CPM of the five alternatives?

Definitions:

Direct Labor-Hours

A measure of the work time spent by employees directly involved in the production of goods or services.

Machine-Hours

A measurement of production output or activity based on the number of hours machines are operated in the manufacturing process.

Machining Department

A specific division within a manufacturing plant where machining, a process of shaping metal or other materials, is carried out.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate indirect costs to products or services based on a consistent activity measure.