If a real estate firm sets a target CPA at $40 with a $10,000 budget, how many conversions do they aim for?

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Prepare for the WGU MKTG 6040 D381 E-Commerce and Marketing Analytics Exam. Use flashcards and multiple choice questions with hints and explanations. Ensure your success on this crucial exam!

Multiple Choice

If a real estate firm sets a target CPA at $40 with a $10,000 budget, how many conversions do they aim for?

Explanation:
Target CPA tells you how much you’re willing to pay for each conversion, so with a fixed budget the number of conversions you can afford is simply budget divided by the target CPA. Calculate 10,000 divided by 40, which equals 250. So the firm would aim for 250 conversions. If you consider the other numbers: 400 conversions would require a CPA of 25; 125 conversions would require a CPA of 80; 100 conversions would require a CPA of 100.

Target CPA tells you how much you’re willing to pay for each conversion, so with a fixed budget the number of conversions you can afford is simply budget divided by the target CPA.

Calculate 10,000 divided by 40, which equals 250. So the firm would aim for 250 conversions.

If you consider the other numbers: 400 conversions would require a CPA of 25; 125 conversions would require a CPA of 80; 100 conversions would require a CPA of 100.

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