Gce Model Questions Vol1 2017 Commerce Question 39

Practice objective / multiple choice question 39 from the 2017 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2017 Commerce Objective / Multiple Choice Hard Difficulty
Question 39 GCE_MODEL_QUESTIONS_VOL1 • 2017 • COMMERCE • objective

A company runs two simultaneous advertising campaigns, A and B, targeting the same market. Campaign A reaches \(60\%\) of the market, campaign B reaches \(50\%\), and \(30\%\) of the market is reached by both campaigns. The cost per thousand impressions (CPM) is \(₦150\) for A and \(₦120\) for B. The total advertising budget is \(₦180,000\) and the number of impressions is directly proportional to the amount spent on each campaign. Determine how the budget should be allocated between campaigns A and B to maximise the total unique reach, and state the maximum percentage of the market that can be reached.

Answer Options

A. Spend ₦90,000 on A and ₦90,000 on B; maximum unique reach = 78 % of the market
B. Spend ₦100,000 on A and ₦80,000 on B; maximum unique reach = 82 % of the market
C. Spend ₦120,000 on A and ₦60,000 on B; maximum unique reach = 75 % of the market
Correct Answer D. Spend ₦108,000 on A and ₦72,000 on B; maximum unique reach = 80 % of the market
Correct Answer
D
Correct Option:
Spend ₦108,000 on A and ₦72,000 on B; maximum unique reach = 80 % of the market

About This Question

This is Gce Model Questions Vol1 2017 Commerce Question 39. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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