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Practice Reading: Fill in The Blanks (Drag & Drop) ID: #5428 Cosmetics 1
Instructions
* Drag the correct answer into all target fields
Does  advertising  increase  the  cost  of  things?  Well,  the  answer  is  maybe'.  A  top  actress  can  be  paid  as  much  as  20  million  euros  to  become  the  face  of  a  top  cosmetics  brand.  Lets  say  a  company  spends  six  million  euros  on  a  marketing    to  achieve  total  sales  of  20  million  euros.  Thats  a  third  of  total  sales  spent  on    someone  to  buy  the  product.  That  figures  even  higher  once  the  sales  assistant  at  the  department  store  has  been  paid  her  commission.  But  that  oversimplifies  the  issue.  If  a  large  cosmetics  company  has  fixed  costs  (for  their  factories  and  staff)  of  100  million  euros  and  variable  costs  (for  ingredients  and  transport)  of  another  100  million  euros,  it  needs  to  sell  ten  million  jars  of  face  cream  at  20  euros  each  just  to  get  back  their  costs.  If  a  famous  actress  appears  in  a    which  sells  20  million  face  creams,  the  fixed  costs  per  jar  go  down  and  those  savings  might  be  passed  on  to  the    in  the  form  of  price    or  two-for-one  deals.

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