Business, 18.03.2021 22:50 adios0

ou have just created HotHouse-Gardening Online, a content site for people interested in home gardening. You have 2 employees on the staff, with an average annual salary of $25,000 each. These salaries are independent of the number of visitors to your web site. Other costs for running an office are $5,000 per year. You intend to spend $5,000 in advertising for this year and expect about 200,000 visitors. There are two sources of revenues for your website, namely: (a) Advertising revenue and (b) Commissions for gardening purchases leading from the links at the site. The CPM (cost per thousand) advertising rate for the web site is $20. On average, 5% of visitors to the site make a purchase. The average commission from each purchase from the site is $2. Assume that the variable costs are insignificant. How much do we expect 1000 visitors to contribute to Commissions?

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