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

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

Options:

  1. $5
  2. $10
  3. $15
  4. $20

Correct Answer: $10

Solution: 

CPA = Total Advertising Cost / Number of New Customers = $1,500 / 150 = $10.

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)?
  1. $5
  2. $10
  3. $15
  4. $20

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.
  • Cost Per Acquisition (CPA) – CPA is a metric used to determine the cost associated with acquiring a new customer through advertising.
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