Neco 2018 Commerce Question 27

Practice objective / multiple choice question 27 from the 2018 Neco Commerce examination.

Neco 2018 Commerce Objective / Multiple Choice Medium Difficulty
Question 27 NECO • 2018 • COMMERCE • objective

Two mobile telephone plans are available. Plan\u00A0A charges \(\text{₦}2\) per minute for the first 100 minutes and \(\text{₦}1\) for each additional minute. Plan\u00A0B has a flat monthly fee of \(\text{₦}150\) which includes 100 minutes; every minute beyond 100 is charged at \(\text{₦}0.90\). A value‑added tax of 5\% is applied to the total monthly charge of each plan. (i) Determine the number of minutes at which the total monthly bill for Plan\u00A0A equals that for Plan\u00A0B. (ii) If a subscriber uses 120 minutes in a month, which plan is cheaper and by how much after tax?

Answer Options

A. Break‑even at 80 minutes; for 120 minutes Plan B is cheaper by ₦48.00 after tax
B. Break‑even at 75 minutes; for 120 minutes Plan A is cheaper by ₦54.60 after tax
C. Break‑even at 70 minutes; for 120 minutes Plan B is cheaper by ₦60.75 after tax
Correct Answer D. Break‑even at 75 minutes; for 120 minutes Plan B is cheaper by ₦54.60 after tax
Correct Answer
D
Correct Option:
Break‑even at 75 minutes; for 120 minutes Plan B is cheaper by ₦54.60 after tax

About This Question

This is Neco 2018 Commerce Question 27. It is one of the objective questions from the 2018 Neco Commerce examination.

Difficulty level: Medium .

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