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Explain: When an electronics company charges $100 for its product it sells 500 units. The company decides to have a promotional sale and sell its product for $75. With the sale the company sells 1200 units. The company also advertises online. The company pays $1.00 per click and typically receives a total of 250 clicks. When the company increased the price per click to $2.50 it received a total of 900 clicks.
a) Determine the maximum price per click for a paid search engine.
Hint: Pay per Click is a Cost for the company.
Sagot :
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