Waec Model Questions Vol1 2019 Commerce Question 24
Practice objective / multiple choice question 24 from the 2019 Waec Model Questions Vol1 Commerce examination.
An advertising agency proposes a TV commercial campaign. The commercial will be aired 3 times a week for 8 weeks (total 24 airings). Each airing reaches an estimated audience of 250,000 viewers. The agency charges a fixed production cost of ₦1,200,000 and a broadcasting fee of ₦45,000 per airing. The client requires a return on advertising spend (ROAS) of at least 4 (i.e., for every naira spent, at least ₦4 in sales revenue must be generated). If the product sold yields a profit margin of 20% and each unit sells for ₦5,000, what is the minimum total sales revenue the client must achieve to meet the ROAS target, and how many units must be sold?
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About This Question
This is Waec Model Questions Vol1 2019 Commerce Question 24. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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