Neco 2018 Commerce Question 28

Practice objective / multiple choice question 28 from the 2018 Neco Commerce examination.

Neco 2018 Commerce Objective / Multiple Choice Hard Difficulty
Question 28 NECO • 2018 • COMMERCE • objective

An advertiser wants to reach 60\% of a target market of 2,000,000 people with an average frequency of 3 exposures. TV spots cost \(\text{₦}150\) each and deliver 250,000 impressions; newspaper ads cost \(\text{₦}200,000\) each and deliver 500,000 impressions. Because of scheduling, at most 10 TV spots can be purchased. The conversion rate from an impression to a sale is 0.02\% and the profit per unit sold is \(\text{₦}120\). Determine the minimum numbers of TV spots and newspaper ads required to meet the reach‑frequency target, the total advertising cost, and the number of units that must be sold to break even on that cost.

Answer Options

A. TV spots = 10, newspaper ads = 2; total cost = ₦401,500; break‑even sales = 3,346 units (expected sales = 700 units)
Correct Answer B. TV spots = 10, newspaper ads = 3; total cost = ₦601,500; break‑even sales = 5,013 units (expected sales = 800 units)
C. TV spots = 8, newspaper ads = 5; total cost = ₦1,001,200; break‑even sales = 8,344 units (expected sales = 900 units)
D. TV spots = 9, newspaper ads = 4; total cost = ₦801,350; break‑even sales = 6,678 units (expected sales = 850 units)
Correct Answer
B
Correct Option:
TV spots = 10, newspaper ads = 3; total cost = ₦601,500; break‑even sales = 5,013 units (expected sales = 800 units)

About This Question

This is Neco 2018 Commerce Question 28. It is one of the objective questions from the 2018 Neco Commerce examination.

Difficulty level: Hard .

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