A magazine with a circulation of 10,000,000 has a per-page rate of $50,000.Seventy percent of the magazine's readers are target customers for the retailer.The retailer's real cost per thousand for this magazine is ________.

Question

Quizplus · Accepted Answer

First, we need to calculate how many target customers the magazine reaches:
10,000,000 (circulation) x 0.70 (target customers) = 7,000,000

Then, we need to calculate the cost per page to reach those target customers:
$50,000 (per page rate) / 10,000,000 (total circulation) x 7,000,000 (target customers reached) = $35,000

Finally, we need to convert this cost to cost per thousand (CPM):
$35,000 / 7,000 = $5, or 
$5 x 1,000 = $5,000

Therefore, the retailer's real cost per thousand for this magazine is $7.14 (rounded to the nearest cent).

The best choice is C, $7.14.

A Magazine with a Circulation of 10,000,000 Has a Per-Page