Neco 2019 Commerce Question 40

Practice objective / multiple choice question 40 from the 2019 Neco Commerce examination.

Neco 2019 Commerce Objective / Multiple Choice Medium Difficulty
Question 40 NECO • 2019 • COMMERCE • objective

A small business subscribes to a telephone service with a base monthly fee of ₦8,000. Calls are billed as follows: the first 200 minutes each month are charged at ₦45 per minute, the next 300 minutes at ₦35 per minute, and any usage beyond 500 minutes at ₦25 per minute. The business makes 120 calls per month, each lasting an average of \(d\) minutes. With probability 0.3 the total monthly minutes increase by 20 % because of occasional longer calls. The business expects a monthly revenue of ₦2,500,000 and wants its expected telephone expense not to exceed 5 % of this revenue. What is the maximum average call duration \(d\) (in minutes, to two decimal places) that the business can afford while meeting the expense constraint?

Answer Options

A. 32.45
Correct Answer B. 34.59
C. 30.00
D. 36.78
Correct Answer
B
Correct Option:
34.59

About This Question

This is Neco 2019 Commerce Question 40. It is one of the objective questions from the 2019 Neco Commerce examination.

Difficulty level: Medium .

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