Gce Model Questions Vol1 2022 Commerce Question 31

A firm wishes to run a TV advertising campaign. The agency's base rate for a 30‑second TV spot is \(\text{₦}8,000\). The firm negotiates a \(12\%\) discount on the base rate, and if it books more than 10 spots it receives an additional \(5\%\) discount on the already discounted price. A government tax of \(7.5\%\) is added to the final amount. Each spot generates revenue as follows: the first five spots each bring in \(\text{₦}20,000\), and each subsequent spot generates \(10\%\) less revenue than the preceding spot. The firm has a maximum advertising budget of \(\text{₦}200,000\). Determine the number of spots the firm should book to maximise net profit (revenue minus total advertising cost) without exceeding the budget, and state the resulting net profit.