If You Ordered a Commercial to Run on a Local

question 21

Multiple Choice

If you ordered a commercial to run on a local station that could reach 500,000 households for a cost of $1,000, what would your cost per thousand (CPM) be?

• A)$2.00
• B)$3.00
• C)$5.00
• D)$4.00

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Definitions:

Invested Assets

Assets that have been purchased or acquired for the purpose of generating income or profit, not for immediate resale.

Minimum Return

The lowest acceptable rate of return on an investment that a manager or investor is willing to accept.

Residual Income

Residual income is the amount of net income generated in excess of the minimum rate of return. It's often used to assess the performance of business units.

Invested Assets

Resources or funds that have been allocated for investment purposes in various types of assets, such as stocks, bonds, or real estate, aiming for potential returns.