CuseStyle is an online retailer selling school merchandise of Syracuse University. Syra, who is the owner of CuseStyle, is planning to run a search ad campaign to promote limited editioned t-shirts sold on its website. in a search engine website named Kookle for a month. Kookle suggested three possible pricing quotes. First method is flat rate pricing where an advertiser pays a fixed advertising cost to run the search ad campaign regardless of the advertising efficiency. Second method is "CPM (Cost-Per-Thousand) pricing where an advertiser pays proportionally to the number of **impressions. Final method is CPC (Cost-Per-Click) pricing where an advertiser pays based on the number of clicks. Based on the contract, Syra should pay 10% of total sales as design royalty to James, who is a famous t-shirt designer as well as Syra's nephew. Assume that (1) all the sales of the limited editioned t-shirt is from this search ad, and (2) quantity produced and expected quantity of sales are equal. The information of the pricing and the expected number of impressions per month and ***CTR (click-through rate) is summarized in the table below. "The "M" represents the Roman numeral for 1,000. **Impression: how often an advertisement has been displayed on the website ***CTR is calculated as follows: CTR = the number of clicks the number of impressions Flat-rate price The number of impressions Cost per thousand impressions Click-through rate Cost per click Quantity produced Expected number of units sold Price per unit Manufacturing cost per unit Design royalty per unit Flat rate CPM $5,000 2,000,000 $3 CPC 0.5% $0.7 1,000 1,000 $20 $10 10% of the price