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If a business spends $1,500 on advertising and gains 150 new customers, what is

Practice Questions

Q1

If a business spends $1,500 on advertising and gains 150 new customers, what is the cost per acquisition (CPA)?

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Questions & Step-by-Step Solutions

If a business spends $1,500 on advertising and gains 150 new customers, what is the cost per acquisition (CPA)?

Step 1: Identify the total advertising cost, which is $1,500.
Step 2: Identify the number of new customers gained, which is 150.
Step 3: Use the formula for cost per acquisition (CPA), which is CPA = Total Advertising Cost / Number of New Customers.
Step 4: Plug in the numbers: CPA = $1,500 / 150.
Step 5: Calculate the result: $1,500 divided by 150 equals $10.
Step 6: Conclude that the cost per acquisition (CPA) is $10.

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