A retailer wants to run an ad announcing that the new Harry Potter book will be available at the store next Saturday.There are two newspapers in the community in which the retailer operates.An ad in Newspaper A will cost $500,and an ad in Newspaper B will cost $375.Newspaper A has a circulation of 10,000,and Newspaper B has a circulation of 8,000.After calculating the cost per thousand (CPM),you know that:
A)Newspaper A is the more cost-effective buy.
B)both newspapers are equally cost-effective.
C)Newspaper B is the more cost-effective buy.
D)neither newspaper is cost-effective.
E)the cost per program rating for newspaper B is $50.

Question

Quizplus · Accepted Answer

To calculate the CPM, we need to divide the cost of the ad by the circulation (in thousands) and then multiply by 1,000.
For Newspaper A: CPM = ($500 / 10) x 1,000 = $50
For Newspaper B: CPM = ($375 / 8) x 1,000 = $46.875
Therefore, Newspaper B is the more cost-effective buy as it has a lower CPM.

A Retailer Wants to Run an Ad Announcing That the New