Gce Model Questions Vol1 2023 Commerce Question 48
Practice objective / multiple choice question 48 from the 2023 Gce Model Questions Vol1 Commerce examination.
A company has a £120,000 advertising budget for a new product. It can spend on three media: TV, radio and online. Expected reach per £1 spent is 1,500 people (TV), 800 people (radio) and 1,200 people (online). Conversion rates are 2 % (TV), 3 % (radio) and 4 % (online). Profit per unit sold is £2. The company wants to achieve at least £8,000,000 profit and wishes to minimise the amount spent on online advertising, assuming the remaining budget is allocated to the media that gives the highest profit per pound. How much must be spent on online advertising (to the nearest pound)?
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About This Question
This is Gce Model Questions Vol1 2023 Commerce Question 48. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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