The owner of a retail store that specializes in sporting equipment plans to buy TV ad time during a local station's showing of Coach's Corner, a weekly high school retrospective. The owner of the store has learned the show has a rating of 10, reaches 12,000 people in the primary target audience, and a 15-second spot costs $600. What is the cost per thousand (CPM)?

Question

Quizplus · Accepted Answer

To calculate the CPM, we use the following formula: CPM = (Cost of ad / Audience reached) x 1000. 
The cost of a 15-second spot is $600, and the audience reached is 12,000. 
CPM = (600 / 12,000) x 1000 = $50. 
Therefore, the CPM is $50. The best choice is C.

The Owner of a Retail Store That Specializes in Sporting