Marketing Essentials

Unit 6: Promotion

Math Workout

1
As an employee at Sparkle Market, you get a discount of 25%. You also have the following coupons: 50 cents off milk, $1.00 off cheese, 25 cents off a dozen eggs. The regular prices on these items are milk: $2.05, cheese: $4.50, and eggs: $1.35. You would like to purchase all three items, but the only problem is that you don’t know if your employee discount is taken off before or after the coupon discounts are made. What is the difference between the two totals on these items?
A)$1.31
B)$1.75
C)$0.44
D)$0.22
2
A wholesale company is interested in having its product displayed in the front window of your retail business. In order to encourage you to do this, the wholesaler is offering you a promotion of 25% off the usual wholesale price of $15.90. Since this discount is meant to benefit the store only, no discount will be passed on to the customers, and you will continue to sell the product for $32.99. How much more of a profit can your business now make on the sale of 500 of this product?
A)$1,985.00
B)$8,545.00
C)$5,965.00
D)$4,130.00
3
In order to gain positive publicity for his toy company, the company’s president has decided to donate three percent of the profits on every swing set sold to help educate children in Somalia, and two percent to conserving the Amazonian rainforest. If the profit on each swing set is $570.35, how much will be donated to each cause?
A)$17.11 on education and $11.41 on conservation
B)$171.11 on education and $114.07 on conservation
C)$16.77 on education and $11.41 on conservation
D)$17.11 on education and $11.06 on conservation
4
In the shopping mall about 650 people pass and look at the display in your store window each weekday. You know that about 40% more people pass daily on weekends. How many people are likely to pass this weekend?
A)910 people
B)2080 people
C)1,820 people
D)780 people
5
It takes one of your employees about three and a half hours to design new displays for the front windows and about four hours to set them up. Typically, you have someone change the display every two weeks. If your employees make an average of $9.55 an hour, how much of your yearly budget goes to labor for the display changes?
A)$1,862.25
B)$859.50
C)$1,933.88
D)$1,986.40
6
A car company has an advertising budget of $543,900 yearly. Thirty-two percent of this amount is spent on television ads, forty-seven percent is spent on newspaper and magazine ads, fifteen percent is spent on ads in the yellow pages, and the rest is spent on Internet advertising. How much more is spent each year on TV ads than on Internet ads?
A)$152,292
B)$163,605
C)$87,024
D)$141,414
7
Your boss has asked you to determine what it will cost to place a full-color, two-page ad with bleed in a popular magazine next month. You investigate the cost of advertising in the magazine and find the following: the magazine charges a base rate of $48,000 per page for a full color ad, then 18% extra for bleed. The magazine has a circulation of 5.4 million. What can you tell your boss the CPM (cost per thousand) rate will be to run this ad?
A)$19
B)$21
C)$10
D)$13
8
Two companies have entered into a cooperative advertising agreement in order to place a TV ad. The ad will feature the clothing of Company A that are sold in the retail stores of Company B. The ad is likely to cost $124,000 total, 55% of which Company A will pay, and the remainder will be paid for by Company B. How much more will Company A pay than Company B?
A)$12,400
B)$55,800
C)$68,200
D)$43,400
9
You work at an advertising agency, and your clients have given you some specifications for the ad they have asked you to design. They would like twenty-five percent of the layout to be taken up by the headline, thirty percent by the copy, and fifteen percent by the logo and slogan. If the layout will be on an 8” by 10” page, about how many square inches will be left for the illustrations?
A)56 square inches
B)5.4 square inches
C)24 square inches
D)12 square inches
10
An ad agency has pitched an idea to your company. The ad will cost $15,500 per magazine to be run in 6 magazines. If you expect that between the 6 magazines, 1.4 million people will notice the ad, what will be the cost per person to run it?
A)11 cents
B)66 cents
C)7 cents
D)1 cent
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