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.

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calculista calculista · Answer 1 · 2019-09-23T11:32:34+02:00

Answer:

Part 1) The cost per second is [tex]\$130,333.33[/tex]

Part 2) The cost per customer is [tex]\$0.034[/tex]

Step-by-step 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

[tex]x=\$3,910,000[/tex]

[tex]y=30\ sec[/tex]

[tex]\frac{\$3,910,000}{30}=\$130,333.33[/tex]

therefore

The cost per second is [tex]\$130,333.33[/tex]

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

[tex]x=\$3,910,000[/tex]

[tex]y=115,000,000\ customers[/tex]

[tex]\frac{\$3,910,000}{115,000,000}=\$0.034[/tex]

therefore

The cost per customer is [tex]\$0.034[/tex]