Waec Model Questions Vol1 2022 Commerce Question 1
Practice objective / multiple choice question 1 from the 2022 Waec Model Questions Vol1 Commerce examination.
A company sells a product for ₦500 each. The variable cost per unit is ₦300. Currently it sells 2,000 units per month. It is considering an advertising campaign that costs a fixed amount X (in naira) plus a promotional cost of ₦20 for each unit sold as a result of the campaign. For every ₦10,000 spent on advertising (excluding the per‑unit promotional cost) the company expects its sales to increase by 5%. Determine the minimum advertising spend (rounded up to the nearest thousand naira) required to raise the monthly profit by at least ₦150,000 compared with the present profit.
Answer Options
About This Question
This is Waec Model Questions Vol1 2022 Commerce Question 1. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.