Sunday, September 23, 2012

Solution to Contest #16

How much will it cost to run this test advertising campaign?

Each viewing of the ad will be seen by 5,784 (240,000 x 0.0241) people.

To get at least half million impression, it will need to be shown 87 times (500,000 / 5,784 and rounded up)

Total cost is $27,405 (87 x $315).

If the manufacturer's profit is $825 per car sold, how many cars must be sold just to pay for this advertising campaign?   

The manufacturer needs to sell at least  34 cars ($27,405 / $825 and rounded up) more than its usual sales to pay for this advertising campaign.


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