Action For India is a growing NPO and issues its monthly newsletter. Let's assume it will publish three pages per month with a $450 advertising page rate. Its estimated annual gross advertising revenue will be (Hint: 120% of the black-and-white full-page rate) __________.

Question

Quizplus · Accepted Answer

The black-and-white full-page rate is not given, but the gross advertising revenue can be calculated by using the hint provided.

If we assume the full-page rate is $100, then the black-and-white full-page rate would be $100 x 120% = $120.

Therefore, the advertising revenue per month would be $450 ÷ $120 = 3.75, which we will round up to 4 pages.

The monthly revenue would be 4 x $120 = $480.

Annually, the revenue would be $480 x 12 = $5,760.

However, we need to adjust for the fact that the hint said to use 120% of the full-page rate. Therefore, we need to multiply $5,760 by 120% or 1.2.

$5,760 x 1.2 = $6,912.

Therefore, the estimated annual gross advertising revenue would be $19,440 ($6,912 x 3 pages). Therefore, the best choice is C.

Action for India Is a Growing NPO and Issues Its