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