Examlex
Which of the following statements is true of the cost per thousand (CPM) method of measuring efficiency in the advertising industry?
Contribution Margin Ratio
The percentage of each sales dollar remaining after variable costs have been deducted, indicating how much of sales revenue is available to cover fixed costs and generate profit.
Target Profit
The desired level of financial gain set by a business for a specific period, guiding pricing strategies and operational decisions.
Monthly Fixed Expense
Expenses that do not change month to month, regardless of business activity, such as rent or salaries.
Contribution Margin Ratio
The proportion of sales revenue that exceeds variable costs, represented as a percentage.
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