Dollar amounts need to be rounded to 2 decimal places and include a dollar sign. Do not include the questions in your submission. Any submissions that include the questions or parts of the assignment will be subject to a 20% penalty.

1) There are multiple options for advertising in the PROSIM module. Advertising is an expense that helps increase revenues. Much like other expenses, it is very important to keep advertising costs at an acceptable level.

a) Calculate the cost per family for each of the following advertising options:

Campaign	Families	Cost per Week
KDIN Broadcast	321,500	$36,000
Toronto Life	85,250	First 5 digits of your student number
Restaurant Guide	21,412	Last 4 digits of your student number
Instagram	102,523	First 5 digits of your student number

(4 Marks)

b) If you expected next weeks revenue to be the first 6 digits of your student ID what would your advertising budget be? Which, if any, options from Part A would you choose as your advertising medium and why? (4 Marks)

2. Here are the conversion rates of the above media campaigns:

Campaign	Families	Conversion Rate
KDIN Broadcast	321,500	0.5%
Toronto Life	85,250	2%
Restaurant Guide	21,412	3.6%
Instagram	102,523	11%

a) Suppose your restaurant only has 1 item on the menu and sells that item for $Last 2 digits of your student ID. Calculate how much revenue you could expect from each advertising campaign. (4 Marks)

b) Taking total cost, your advertising budget and conversion rate into account, which advertising campaign would be best for your restaurant? Why? (3 marks)