Micro-mark mails catalogs to rented lists in an effort to acquire new customers.

Given the following financial results, what was the cost per customer acquired of the mailing.

Number of catalogs mailed (circulation) = 100,000

Catalog cost = $0.50 per catalog

Sales attributed to the mailing = $80,000

New customers orders from the catalog mailing = 1000

Gross profit margin % (includes all variable costs) = 50%

(All costs include cost of goods, and variable costs per order)

What was the advertising cost per customer acquired ________________________

What was the total cost per acquisition (CPA) of the campaign, including any offsetting gross profit from first order ______________________

A business newsletter is selling subscriptions to its weekly newsletter. They have launched a digital campaign (banner ads) on various web sites in an effort to get people to sign-up for a 3 month free trial to the newsletter. The campaign in the first month generated 500 new subscription (free trials). The cost of the banner ads was $10,000 for 1,000,000 impressions.

What was the cost per acquisition of the campaign ______________________