4. Sackville Screamers makes Bluetooth speakers for home use. They are looking at placing an

advertisement in the Halifax Chronicle Herald for their speakers. The ad will cost $25,000.

According to the Herald the ad will be seen by 250,000 people in Nova Scotia broken down as

follows by age:

a. 10% of readers are 19 or younger

b. 20% of readers are age 20-35

c. 40% of readers are age 36-59

d. 30% of readers are age 60 and older.

Consumers 19 and younger are Sackville Screamers major target market. They believe people in

the 20-35 age range are about 75% as likely to buy their product as the 19 and under group,

people 36-59 are 30% as likely to buy the product as the 19 and under group and people 60 and

older are 5% as likely to buy the product as the 19 and under group. What is the weighted cost

per thousand of this advertisement? (the most important segment is given a weight of 1 and the remaining weights are less than 1)(20 points)

Use weighted CPM formula (cost/ weighted reach)