The Owner of a Retail Store That Specializes in Sporting

question 60

Multiple Choice

The owner of a retail store that specializes in sporting equipment plans to buy TV ad time during the broadcast of Win or Lose,a game show that has a rating of 10.It reaches 12,000 people in the primary target audience and a 15-second spot costs $600.What is the cost per thousand of the show?

• A) $20.00
• B) $40.00
• C) $50.00
• D) $60.00
• E) $75.00

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Definitions:

Selling Price

The amount for which a product or service is sold to the customer, which may include cost, overheads, and profit margin.

Variable Manufacturing Overhead

Expenses related to manufacturing that fluctuate with production volume, including costs for supplies and variable labor.

Machine-Hours

A measure of production time using machinery, often used to allocate manufacturing overhead based on the time machines are used in the production process.

Predetermined Overhead Rate

A calculated rate used to assign overhead costs to products or services, based on estimated or budgeted overhead expenses and activity.