Neco 2017 Commerce Question 2

Practice objective / multiple choice question 2 from the 2017 Neco Commerce examination.

Neco 2017 Commerce Objective / Multiple Choice Hard Difficulty
Question 2 NECO • 2017 • COMMERCE • objective

A company plans an SMS promotional campaign. The service provider charges a fixed setup fee of \\(\\text{₦}50,000\\) plus \\(\\text{₦}5\\) per message. The company intends to send messages to \\(20,000\\) customers. The expected response rate is \\(4\\%\\), and each response generates revenue of \\(\\text{₦}250\\). (a) How many responses are required to break even? (b) Based on the expected response rate, what is the profit or loss?

Answer Options

Correct Answer A. Break‑even: 600 responses; Profit: ₦50,000
B. Break‑even: 500 responses; Profit: ₦25,000
C. Break‑even: 600 responses; Profit: ₦0
D. Break‑even: 800 responses; Profit: ₦100,000
Correct Answer
A
Correct Option:
Break‑even: 600 responses; Profit: ₦50,000

About This Question

This is Neco 2017 Commerce Question 2. It is one of the objective questions from the 2017 Neco Commerce examination.

Difficulty level: Hard .

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