Gce Model Questions Vol1 2023 Commerce Question 49
Practice objective / multiple choice question 49 from the 2023 Gce Model Questions Vol1 Commerce examination.
A firm can purchase advertising packages from a magazine. The Standard package contains 10 ads and costs £5,000; each ad reaches 8,000 readers. The Premium package contains 15 ads and costs £7,200; each ad reaches 9,500 readers. If the firm buys at least one Standard and one Premium package, the total cost receives a 10 % discount. It is estimated that 1.5 % of all readers who see an ad will buy the product, earning a profit of £30 per unit sold. The firm wants to achieve a profit of at least £150,000. Determine the numbers of Standard and Premium packages the firm should purchase to meet the profit target at the minimum total cost, and state that minimum cost.
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About This Question
This is Gce Model Questions Vol1 2023 Commerce Question 49. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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