The manufacturer of Testamints candy,the candy that comes with spiritual messages on each piece,estimates the product's new advertising campaign will reach 1,750,000 people and will cost $400,000 if the company uses radio and newspaper,and $6.5 million if it uses television.The company's decision seems to rest on:

Question

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The company's decision seems to rest on cost per contact, which is the cost of reaching one person with the advertising campaign. The cost per contact for radio and newspaper is much lower than for television, which means the company would be able to reach more people for its advertising budget if it chooses radio and newspaper.

The Manufacturer of Testamints Candy,the Candy That Comes with Spiritual