The owner of a retail store that specializes in sporting equipment plans to buy TV ad time during the broadcast of Win or Lose,a game show that has a rating of 10.It reaches 12,000 people in the primary target audience and a 15-second spot costs $600.What is the cost per thousand of the show?
A) $20.00
B) $40.00
C) $50.00
D) $60.00
E) $75.00

Question

Quizplus · Accepted Answer

The media buyer selects the most efficient programs in relation to the target audience using the cost per thousand (CPM) for each program. Cost per thousand (CPM) = Cost/(Reach/1000) = 600/(12000/1000) = 600/12 = $50.

The Owner of a Retail Store That Specializes in Sporting