Question

A magazine has a total readership of 750,000; 65 percent of readers report seeing a company's advertisement in one issue. The cost of the ad was $97,500. Calculate the cost per customer.

Answer 1

$0.20

Explanation:

Cost per customer is cost divided by the number of customers:

cost/customer = $97,500/(0.65·750000) = $0.20

The cost per customer is 20¢.