Post Utme Elizade University 2019 Commerce Question 32

Practice objective / multiple choice question 32 from the 2019 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2019 Commerce Objective / Multiple Choice
Question 32 POST_UTME_ELIZADE_UNIVERSITY • 2019 • COMMERCE • objective

A company is considering two different advertising strategies for its new product. Strategy A involves a high level of social media advertising, while Strategy B involves a low level of social media advertising. The company's marketing manager estimates that Strategy A will result in a 20% increase in sales, while Strategy B will result in a 10% increase in sales. However, Strategy A will also result in a 5% increase in costs, while Strategy B will result in a 2% increase in costs. What is the net benefit of Strategy A compared to Strategy B?

Answer Options

A. 0.5%
B. 1%
Correct Answer C. 1.5%
D. 2%
Correct Answer
C
Correct Option:
1.5%

About This Question

This is Post Utme Elizade University 2019 Commerce Question 32. It is one of the objective questions from the 2019 Post Utme Elizade University Commerce examination.

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