Exhibit 7.1 The Following Questions Are Based on the Problem Below

question 7

Multiple Choice

Exhibit 7.1
The following questions are based on the problem below.
A company wants to advertise on TV and radio. The company wants to produce about 6 TV ads and 12 radio ads. Each TV ad costs $20,000 and is viewed by 10 million people. Radio ads cost $10,000 and are heard by 7 million people. The company wants to reach about 140 million people, and spend about $200,000 for all the ads. The problem has been set up in the following Excel spreadsheet.
-Refer to Exhibit 7.1. What formula goes in cell D6?

• A) =SUMPRODUCT(B2:B3,B6:B7)
• B) =B2*C2+B6*C6
• C) =SUMPRODUCT(B2:C2,B10:C10)
• D) =SUMPRODUCT(B2:C2,B6:C6)

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Definitions:

Human Capital

The economic value of a worker's experience and skills, including factors like education, training, intelligence, skills, health, and other things employers value.

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or provide their services.

Intellectual Capital

The intangible value of a company's assets such as knowledge, brand, reputation, and employee competence.

Money Market Fund

A type of mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents and is considered to be relatively low risk.