The Cost of a Direct Mail Advertisement for Rolling Hills

question 42

Multiple Choice

The cost of a direct mail advertisement for Rolling Hills Restaurant was $5,000 and was sent to 15,000 households.Reach for the direct mail advertisement was determined to be 10,000.Which of the following is the correct cost per thousand-target market (CPM-TM) ?

• A) $0.33
• B) $.50
• C) $1.00
• D) $333.33
• E) $500

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Definitions:

Productive Resource

An economic term for the inputs used in the production of goods or services in the attempt to make an economic profit.

Inelastic

Describing a situation where the demand or supply for a good or service is not highly sensitive to changes in price.

Loan Interest

The additional amount paid by a borrower to a lender in exchange for the use of borrowed money, often expressed as an annual percentage rate.