A Retailer Wants to Run an Ad Announcing That the New

question 44

Multiple Choice

A retailer wants to run an ad announcing that the new Harry Potter book will be available at the store next Saturday.There are two newspapers in the community in which the retailer operates.An ad in Newspaper A will cost $500,and an ad in Newspaper B will cost $375.Newspaper A has a circulation of 10,000,and Newspaper B has a circulation of 8,000.After calculating the cost per thousand (CPM) ,you know that:

• A)Newspaper A is the more cost-effective buy.
• B)both newspapers are equally cost-effective.
• C)Newspaper B is the more cost-effective buy.
• D)neither newspaper is cost-effective.
• E)the cost per program rating for newspaper B is $50.

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Definitions:

Markup

An additional amount included in the cost price of products to account for overheads and gain, thereby establishing the price at which they are sold.

Machine-Hours

The total number of hours machines are operated during the production process.

Job-Order Costing

An accounting methodology used to track costs and evaluate production expenses for specific jobs or batches of goods.

Direct Labor-Hours

The aggregate of hours spent by staff members who are directly engaged in producing merchandise or rendering a service.