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3 years ago

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Suppose the following information: The cost of a full-page color ad in the U.S. national edition of The Wall Street Journal (new

spaper) is $327,897 and its U.S. audience size is 1,566,027. The cost of a full-page color ad in the U.S. national edition of USA Today (newspaper) is $207,720 and its U.S. audience size is 1,711,696. The cost of a full-page color ad in the U.S. national edition of Bloomberg Businessweek (magazine) is $148,300 with an audience size of 900,000. The cost of a full-page color ad in the U.S. national edition of Sports Illustrated (magazine) is $396,600 and has an audience size of 3,000,000. The cost of a 30-second ad on the most recent Super Bowl telecast is $3,800,000 and has an audience size of 108,400,000. Using this information, which of the five media alternatives has the highest CPM?

1 answer:

tia_tia [17]3 years ago

6 0

Answer:

The highest CPM is for the U.S. national edition of Bloomberg Businessweek (magazine) at $0.16

Explanation:

The CPM for each alternative can be expressed as;

CPM=total cost/audience size

a). CPM for U.S. national edition of USA Today is;

total cost of U.S national edition of USA toady=$207,720

U.S. audience size=1,711,696

replacing;

CPM for U.S. national edition of USA Today=207,720/1,711,696=$0.12

b). CPM for U.S. national edition of Bloomberg Businessweek (magazine) is;

total cost U.S. national edition of Bloomberg Businessweek (magazine)=$148,300

audience size=900,000

replacing;

CPM for U.S. national edition of Bloomberg Businessweek (magazine)=148,300/900,000=$0.16

c). CPM for U.S. national edition of Sports Illustrated (magazine) is:

total cost U.S. national edition of Sports Illustrated (magazine)=$396,600 audience size=3,000,000

replacing;

CPM for U.S. national edition of Sports Illustrated (magazine)=396,600/3,000,000=$0.1322

d). CPM for a 30-second ad on the most recent Super Bowl telecast is:

total cost for a 30-second ad on the most recent Super Bowl telecast=$3,800,000

audience size=108,400,000

replacing;

CPM for a 30-second ad on the most recent super Bowl=3,800,000/108,400,000=$0.035

The highest CPM is for the U.S. national edition of Bloomberg Businessweek (magazine) at $0.16

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Answer:

13.85% and 18.9%

Explanation:

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where E(r) is the expected return, $r_{i}$ is the return of the i asset and $w_{i}$ is the investment in i asset, so applying to this particular case we have:

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Answer:

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Explanation:

The debit entry to the Retained Earnings Account will reduce the balance by $8.2 million. The effect of overstating the closing inventory is overstatement of the net income because the cost of sales was understated as a result of the inventory overstatement.

The credit entry to the Opening Inventory reduces the balance to the new balance based on the average cost method of $23.8 million.

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On the other hand, the Average Cost Method, also called the Weighted Average Cost Method, calculates the inventory cost by adding all the period's inventory and dividing it by the quantity for the period. This gives an average cost which is in turn used to multiply the quantity of inventory at the end of the period to obtain the inventory cost.

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Answer:

Patrick Corporation Group

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= $1,544,000.

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= $1,136,000.

Explanation:

a) Data and Calculations:

BALANCE SHEETS December 31, 2017

Patrick Sean Consolidated

Cash $70,000 $70,000 $140,000

Accounts receivable (net) 146,000 38,000 184,000

Inventories 100,000 46,000 168,000

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Accounts payable 176,000 90,000 266,000

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Additional paid-in capital 14,000

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Total liabilities and

shareholders' equity $1,414,000 $424,000 $1,544,000

b) Total stockholders' equity after consolidation is calculated as:

Common stock ($10 par) 340,000

Retained earnings 796,000

Total equity = $1,136,000

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