Neco 2018 Commerce Question 12

A company is choosing an advertising strategy for a new product. Option A: a TV advertisement lasting 4 weeks costs ₦1,200,000 and is expected to reach 2,500,000 viewers with a purchase conversion rate of \(1.2\%\). Option B: a radio advertisement lasting 8 weeks costs ₦720,000 and is expected to reach 1,800,000 listeners with a conversion rate of \(1.8\%\). The company may also add a flyer distribution costing ₦150,000, which is expected to increase the conversion rate of the chosen medium by \(0.3\) percentage points. Each unit sold yields a profit of ₦250. Which advertising strategy (including the decision on whether to use the flyer) gives the highest expected profit? State the chosen option.