Neco 2018 Commerce Question 31

Practice objective / multiple choice question 31 from the 2018 Neco Commerce examination.

Neco 2018 Commerce Objective / Multiple Choice Hard Difficulty
Question 31 NECO • 2018 • COMMERCE • objective

A company needs at least \(3{,}000{,}000\) advertising impressions. Campaign A has a fixed cost of \(\text{₦}500{,}000\) and a variable cost of \(\text{₦}150\) per thousand impressions. Campaign B charges \(\text{₦}200\) per thousand impressions but offers a 10% discount on the total cost if the impressions exceed \(2{,}000{,}000\). Which campaign gives the lower total cost, how much is saved compared with the other campaign, and what is the average cost per impression for the chosen campaign?

Answer Options

A. Campaign A; saved ₦150,000; average cost per impression = ₦0.20
Correct Answer B. Campaign B; saved ₦410,000; average cost per impression = ₦0.18
C. Campaign B; saved ₦350,000; average cost per impression = ₦0.22
D. Campaign A; saved ₦410,000; average cost per impression = ₦0.15
Correct Answer
B
Correct Option:
Campaign B; saved ₦410,000; average cost per impression = ₦0.18

About This Question

This is Neco 2018 Commerce Question 31. It is one of the objective questions from the 2018 Neco Commerce examination.

Difficulty level: Hard .

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