Question

A company pays $3.91 million to air a 30- second commercial during a football game that is watched by approximately 115 million potential customers. Calculate the cost per second and the cost per customer for this commercial.

Answer 1

Part 1) The cost per second is
`\$130,333.33`

Part 2) The cost per customer is
`\$0.034`

Explanation:

Part 1) Calculate the cost per second

we know that

To find out the cost per second, divide the total cost by the time

Let

x ----> the total cost

y ----> the time in seconds

we have

`x=\$3,910,000`

`y=30\ sec`

`(\$3,910,000)/(30)=\$130,333.33`

therefore

The cost per second is
`\$130,333.33`

Part 2) Calculate the cost per customer

we know that

To find out the cost per customer, divide the total cost by the number of customers

Let

x ----> the total cost

y ----> the number of customers

we have

`x=\$3,910,000`

`y=115,000,000\ customers`

`(\$3,910,000)/(115,000,000)=\$0.034`

therefore

The cost per customer is
`\$0.034`