Post Utme Crawford University 2022 Commerce Question 5

Practice objective / multiple choice question 5 from the 2022 Post Utme Crawford University Commerce examination.

Post Utme Crawford University 2022 Commerce Objective / Multiple Choice
Question 5 POST_UTME_CRAWFORD_UNIVERSITY • 2022 • COMMERCE • objective

A company is considering implementing a new marketing strategy that involves offering a discount to customers who purchase a certain product. The company estimates that the discount will result in a 10% increase in sales, but will also result in a 5% decrease in profit margins. What is the net effect of implementing the new marketing strategy on the company's profits?

Answer Options

A. The company's profits will increase by ₦100,000
Correct Answer B. The company's profits will decrease by ₦100,000
C. The company's profits will remain the same
D. The company's profits will increase by ₦500,000
Correct Answer
B
Correct Option:
The company's profits will decrease by ₦100,000

About This Question

This is Post Utme Crawford University 2022 Commerce Question 5. It is one of the objective questions from the 2022 Post Utme Crawford University Commerce examination.

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