Tom is selling water purification systems on an e-commerce site, and he wants to know his conversion cost for his latest Facebook ad. He's spending 40 cents each time a Facebook user clicks on his ad, and his conversion rate is 0.11. Which of the following best represents his conversion cost?

Question

Tom is selling water purification systems on an e-commerce site, and he wants to know his conversion cost for his latest Facebook ad. He's spending 40 cents each time a Facebook user clicks on his ad, and his conversion rate is 0.11. Which of the following best represents his conversion cost? ​

Quizplus · Accepted Answer

The conversion cost is calculated by dividing the cost per click by the conversion rate. Here, it's $0.40 / 0.11 = approximately $3.64, which rounds to option D, $4, as the closest choice provided.

Tom Is Selling Water Purification Systems on an E-Commerce Site