The Cost of a Direct Mail Advertisement for Sam's Self-Recording

question 74

Multiple Choice

The cost of a direct mail advertisement for Sam's Self-Recording Studio was $1,200 and was sent to 9,000 households.Which of the following is the correct cost per thousand (CPM) ?

• A) $0.13
• B) $13.33
• C) $133.33
• D) $7.50
• E) $75.00

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Definitions:

Dish Soap

A cleaning product used to wash dishes, cut through grease, and sanitize kitchenware.

Income

Earnings acquired, frequently on a steady basis, through employment or investing activities.

Consumer Equilibrium

The point at which the quantity of goods and services a consumer chooses to buy equates to the maximum satisfaction or utility for their budget.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods.