Entrepreneurship and Small Business Management

Chapter 12: The Promotion Strategy

Business Math Self Assessment

Newspaper Advertising Costs

When placing an advertisement in a newspaper, the charge depends on whether it is in color or black and white and on the amount of space it uses. The amount of space is figured in column inches. Generally, newspapers charge a certain rate for each column inch. Sometimes they offer a reduced rate if you contract weekly for a specified number of column inches.

Advertisement Cost = Number of Column Inches x Rate per Column Inch

1
ReaLife Real Estate Co. contracted with The Daily Times for 94 column inches of advertising space each week. With this size contract, The Daily charges $33.90 per column inch. ReaLife plans to run an ad that is 21 column inches. What is the cost of the advertisement each time that it appears?
A)$67.55
B)$802.31
C)$711.90
D)$675.50
2
In problem 1, ReaLife will also run a smaller ad that is 6 column inches. What is the cost of this advertisement each time that it appears?
A)$203.40
B)$180.54
C)$188.75
D)$219.53
3
In problem 1, if ReaLife places 4 of the 21-column-inch ads in the newspaper in one week, how much advertising space does it have left on its contract?
A)12 column inches
B)10 column inches
C)6 column inches
D)21 column inches
4
How many column inches is an advertisement that is 5 columns wide and 3 inches deep?
A)3/5 column inch
B)8 column inches
C)1 2/3 column inches
D)15 column inches
5
Lydia's advertising budget for the week is $460. How much newspaper advertising space can she buy on her budget if the newspaper charges $29.83 per column inch?
A)15 column inches
B)16 column inches
C)22 column inches
D)5 column inches
6
In problem 5, Lydia decides to place 2 ads that each are 3 columns wide and 2 inches deep plus one ad that is 2 columns wide and 2 inches deep. What is the total space that these ads will take up?
A)14 column inches
B)16 column inches
C)11 column inches
D)15 column inches
7
Using the information in problems 5 and 6, what would be the charge for the three advertisements that Lydia decides to place in the newspaper?
A)$460
B)$310.94
C)$510.29
D)$477.28
8
In problem 7, by how much will Lydia exceed her advertising budget if she uses the three ads she has chosen?
A)$50.29
B)$0.00
C)$17.28
D)She will be under budget by $149.06.
9
If a newspaper charges $46.27 per column inch, how much will an advertisement that is 1 column by 7 inches cost?
A)$370.16
B)$323.89
C)$277.62
D)$409.82
10
If a newspaper charges $55.60 per column inch for Sunday advertisements, how much will an advertisement that is 105 column inches cost to run on Sunday?
A)$5838
B)$4789.20
C)$654.18
D)$5560.00
11
Jose wants to place two advertisements in the Sunday edition of the city newspaper. Because he has a contract for 16 column inches per week, he is charged a rate of $41.56 per column inch for Sundays. What will be the total charge for the ads if they are both 4 columns by 2 inches?
A)$421.56
B)$498.72
C)$664.96
D)$6649.60
12
In problem 11, if Jose's weekly advertising budget is only $600, how much Sunday advertising space can he afford?
A)6 column inches
B)16 column inches
C)12 column inches
D)14 column inches
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