Waec Model Questions Vol1 2020 Commerce Question 24
Practice objective / multiple choice question 24 from the 2020 Waec Model Questions Vol1 Commerce examination.
A retailer sells a product for ₦2,500 per unit. Variable cost per unit is ₦1,500 and fixed overheads (excluding advertising) are ₦1,500,000 per month. The retailer plans an advertising campaign. Market research shows that each ₦1,000 spent on advertising generates an additional 30 units sold. Advertising can be undertaken in multiples of ₦1,000. What is the minimum advertising expenditure (in thousands of naira) required for the retailer to achieve a profit of at least ₦200,000 for the month, and how many units will be sold at that advertising level?
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About This Question
This is Waec Model Questions Vol1 2020 Commerce Question 24. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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