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a). The below calculation indicated on the both parameter ofshort run and life time profit ,option 3 is one of the mostsuitable for advertisement of the company, calculated below.CostsOpt. 1 Mon. Online MagazineOpt.2 Affiliated Retail StoreOpt. 3 Search EngineVariable$0$0.25/click$0.005/clickTotal variable cost1445420Fixed$500$50AuctionTotal Cost$500$1,495$420OutcomesExpected Clicks1,5505,78084000Average Pg. views2051.5% of Clicks Converted7%3%0.14%ProfitShort term($3.5/client)$379.75$606.90$411.60Long Term ($25/client)$2,712.50$4,335.00$2,940.00Profit / Total costShort term0.75950.4059531770.98Long term5.4252.8996655527b). To determine the benefits of an advertising campaign, shouldHula Island use the profit on the first sale or the expectedlifetime profits? Why?c). To choose between advertising campaigns, should Hula Islanduse the total expected profits or the ratio of total expectedprofits to advertising costs? Why?2. Using your answer from Question 1 (eithershort-run or lifetime, total expected profits, or the ratio oftotal expected profits to advertising costs), determine the winnerof the comparison between Options 1 and 2. Advertising Option 3 isdifferent from the other two options in that the auction determinesthe fixed advertising cost. Assume Hula wins the search engineauction with a bid of $105. Which advertising option (1, 2, or 3)would you recommend to management?