Gce Model Questions Vol1 2020 Commerce Question 38

Practice objective / multiple choice question 38 from the 2020 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2020 Commerce Objective / Multiple Choice Hard Difficulty
Question 38 GCE_MODEL_QUESTIONS_VOL1 • 2020 • COMMERCE • objective

A company runs an online advertising campaign. The cost is \(\text{₦}5\,000\) per thousand impressions (CPM). For the first \(30\,000\) impressions the conversion rate is 2 %; for any additional impressions the conversion rate falls to 1.5 %. Each conversion generates a contribution margin of \(\text{₦}400\). The company wants to achieve a profit of at least \(\text{₦}100\,000\) from the campaign. Determine the minimum total number of impressions (in thousands) required and the corresponding advertising cost.

Answer Options

A. 120 000 impressions; Cost = ₦600 000
B. 110 000 impressions; Cost = ₦550 000
C. 90 000 impressions; Cost = ₦450 000
Correct Answer D. 100 000 impressions; Cost = ₦500 000
Correct Answer
D
Correct Option:
100 000 impressions; Cost = ₦500 000

About This Question

This is Gce Model Questions Vol1 2020 Commerce Question 38. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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