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Calculate CAC From Campaign Inputs

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Problem

Scenario

You are reviewing the performance of a direct-to-consumer marketing campaign and want a quick read on acquisition efficiency. You have the campaign budget, the cost per impression, and the conversion rate, and need to translate those into a customer acquisition metric.

Question

If a direct-to-consumer campaign has a budget of $100,000, a cost-per-impression of $10, and a conversion rate of 1.5%, what is the Customer Acquisition Cost (CAC)?