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krek1111 [17]
2 years ago
12

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?
Business
1 answer:
tia_tia [17]2 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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Chamberlain Co. wants to issue new 17-year bonds for some much-needed expansion projects. The company currently has 12.2 percent
almond37 [142]

Answer:

The company should set the coupon rate on its new bonds at current yield to maturity of 4.81% if it wants them to sell at par.

Explanation:

There is a need to first calculate the yield to maturity (YTM) using the following RATE function in Excel:

YTM = RATE(nper,pmt,-pv,fv) * Number of semiannuals in a year =  RATE(nper,pmt,-pv,fv)*2 .............(1)

Where;

YTM = yield to maturity = ?

nper = number of periods = number of years to maturity * number of semiannuals in a year = 17 * 2 = 14

pmt = semiannual coupon payment = face value * (annual coupon rate / number of semiannuals in a year) = 1000 * (12.2% / 2) = 61

pv = present value = current bond price = 1434.96

fv = face value of the bond = 1000

Substituting the values into equation (1), we have:

YTM = RATE(14,61,-1434.96,1000)*2

Inputting =RATE(14,61,-1434.96,1000)*2 into excel (Note: as done in the attached excel file), the YTM is obtained as 4.81%.

Therefore, the company should set the coupon rate on its new bonds at current yield to maturity of 4.81% if it wants them to sell at par.

Download xlsx
4 0
2 years ago
If buyers today become more willing and able than before to purchase larger quantities of stand up paddle boards (SUPs) at each
In-s [12.5K]

Answer:

This simply implies an increase in the demand of Stand Up Paddle boards at each price of SUPs and an increase in the demand would mean a rightward shift in the demand curve for stand up paddle boards. Usually a rightward shift in the demand curve is caused by a couple of factors such as a increase is income, a fall in price of a complement product, or increase in the price of another product that can be used as a substitute.  

Explanation:

4 0
3 years ago
Here are the comparative income statements of Cullumber Corporation. CULLUMBER CORPORATION Comparative Income Statement For the
max2010maxim [7]

Answer:

Explanation:

Horizontal analysis of financial statements  is a system of comparing each item of financial statement in a previous year to the current year with each line item analysis expressed in a horizontal pattern for clear comparison.

The change in growth is calculated by deducting the previous year's value of an item of the financial statement from the current year while the percentage growth is calculated by calculating the growth value as a percentage of the previous year value

                          2022         2021         Change     % Change

Net sales         639,400    578,200       61,200     10.6%

Cost of goods  464,800   433400        31,400      7.3%

Gross profit      174,600    144,800       29,800      20.6%

Operating exp. 70,500      43,000        27,500       70%

Net Income       104,100       101,800      2,300       2.26%

7 0
3 years ago
Spree Company sold $769,300 of goods during the year at a cost of goods sold of $548,600. Inventory was $31,283 at the beginning
Zarrin [17]

Answer:

16.42

Explanation:

Data provided in the question:

Cost of goods sold =  $548,600

Beginning inventory of the year = $31,283

Ending inventory of the year = $35,538

Now,

the Inventory turnover ratio is calculated as;

⇒ ( Cost of goods sold ) ÷ ( Average inventory of the year )

Also,

Average inventory of the year = \frac{\textup{Beginning inventory + Ending inventory}}{\textup{2}}

= \frac{\$31,283+\$35,538}{\textup{2}}

= $33,410.5

Therefore,

Inventory turnover ratio = $548,600 ÷  $33,410.5

= 16.42

6 0
3 years ago
Cobe Company has already manufactured 19,000 units of Product A at a cost of $25 per unit. The 19,000 units can be sold at this
Dmitriy789 [7]

Answer:

Incremental net income from further processing is  $566,600

Explanation:

First of all, it would be necessary to compute profit from selling the product at cut off point and profit when it is further processed in order to determine whether or not it is worth processing further:

Sales revenue                                        $400,000

cost of production(19,000*$25)            $475,000

Loss from selling                                  ($75,000)

Further processing:

sales revenue

Product B(5200*$108)                       $561,600

Product C(11,000*$55)                       $605,000

Total revenue                                     $1,166,600

total cost

cost of production                              ($475,000)

cost of further processing                 ($200,000)

total costs                                           ($675,000)

Profit                                                    $491600

By further processing the incremental net profit is $566,600 ($491,600-(-$75000)

4 0
3 years ago
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