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Paid Search Cost Per First Transaction

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Welcome to your interview.

The question is on your right: Paid Search Cost Per First Transaction. Take a moment with it first.

Talk your thinking through with me if you like - when you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes). Discussion and graded submissions share your five interviewer interactions, so spend them well.

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Problem

You are currently in position 2 of a paid search term, the click-through rate is 1% and the cost per click is $0.75. What is the cost per first transaction in position 2?