Question

You plan on spending $10,000 on a Billboard. The Billboard is on a highway that has 1,000 cars pass it each day. If you assume there are an average of two people in each car, and .5% of all people that pass the billboard will buy your product selling for $30, how much sales can you estimate from the Billboard in one year?

Answer 1

Explanation:

Known: 1000 cars/day; 2 ppl/car; 0.5 people out of every 100 ppl = $30

Therefore, we can deduce that:

• 365,000 cars/year
• 730,000 people/year
• 3650 people will buy your product per year (730,000 people/year x 0.5%)

3650 people * $30 = $109,500 per year.