Gce Model Questions Vol1 2018 Commerce Question 20

Practice objective / multiple choice question 20 from the 2018 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2018 Commerce Objective / Multiple Choice Hard Difficulty
Question 20 GCE_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • objective

A company launches an online advertising campaign costing £5,000. The campaign generates 12,000 impressions. Of these, 8 % result in clicks. Of the clickers, 25 % fill out a contact form, and 40 % of those contacts convert into sales at an average sale value of £250. The company also incurs a handling cost of £30 for each sale. Calculate: 1. the overall conversion rate from impressions to sales (as a percentage); 2. the total revenue from sales; 3. the total profit (revenue minus advertising and handling costs); 4. the return on investment (ROI) as a percentage based on the advertising spend alone.

Answer Options

A. Conversion rate 0.8%; revenue £23000; profit £15120; ROI 302.4%
B. Conversion rate 0.9%; revenue £24500; profit £16500; ROI 330.0%
Correct Answer C. Conversion rate 0.8%; revenue £24000; profit £16120; ROI 322.4%
D. Conversion rate 0.7%; revenue £21000; profit £13120; ROI 262.4%
Correct Answer
C
Correct Option:
Conversion rate 0.8%; revenue £24000; profit £16120; ROI 322.4%

About This Question

This is Gce Model Questions Vol1 2018 Commerce Question 20. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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