Question

QUESTION 4 of 10: It is estimated that 32 patrons will attend an event for every $100 spent in advertising. If tickets cost $75, how much can a

promoter expect to increase sales if he spends $25,000 in advertising?

Answer 1

$600,000

Explanation:

$25,000 / 100 then 250 x 32 then 8,000 x 75 to get $600,000

Answer 2

• $575000

Explanation:

Spend on advertising = $25000

32 patrons per $100

Number of patrons:

• 25000/100×32 = 8000

Sales amount:

• 8000×$75 = $600000

Increase in sales excluding advertisement cost:

• $600000 - $25000 = $575000