Question

question 10 of 10: you plan on spending 10% of your $500,000 advertising budget on direct mail. for each dollar you spend on direct mail, you can create five sales leads where typically 1% of those leads turn into sales. how many sales would you forecast from your direct mail efforts?
a) 500
b) 2,500
c) 5,000
d) 50,000

Explanation:

Step1: Calculate direct mail budget

$\$500,000 \times 10\% = \$50,000$

Step2: Calculate total sales leads

$\$50,000 \times 5 = 250,000$

Step3: Calculate converted sales

$250,000 \times 1\% = 2,500$

Answer:

b) 2,500