Neco 2020 Commerce Question 8

Practice objective / multiple choice question 8 from the 2020 Neco Commerce examination.

Neco 2020 Commerce Objective / Multiple Choice Hard Difficulty
Question 8 NECO • 2020 • COMMERCE • objective

A small business uses two telephone services.\n\n- Mobile plan: monthly subscription \(\text{₦}5,000\) includes \(200\) minutes; each additional minute costs \(\text{₦}30\).\n- VOIP plan: monthly subscription \(\text{₦}2,500\) includes \(500\) minutes; each additional minute costs \(\text{₦}10\).\n\nEach month the business makes \(800\) minutes of calls, of which \(30\%\) are international and are charged at double the per‑minute rate of the plan on which they are billed. Minutes can be allocated between the two plans in any proportion.\n\nFind the allocation of minutes to the mobile and VOIP plans that minimises the total monthly cost and state that minimum cost.

Answer Options

A. Allocate 600 minutes to VOIP (180 international, 420 local) and 200 minutes to mobile; minimum cost = ₦8,700 per month
B. Allocate 500 minutes to VOIP (150 international, 350 local) and 300 minutes to mobile; minimum cost = ₦9,200 per month
C. Allocate 700 minutes to VOIP (210 international, 490 local) and 100 minutes to mobile; minimum cost = ₦8,900 per month
Correct Answer D. Allocate 600 minutes to VOIP (240 international, 360 local) and 200 minutes to mobile; minimum cost = ₦8,500 per month
Correct Answer
D
Correct Option:
Allocate 600 minutes to VOIP (240 international, 360 local) and 200 minutes to mobile; minimum cost = ₦8,500 per month

About This Question

This is Neco 2020 Commerce Question 8. It is one of the objective questions from the 2020 Neco Commerce examination.

Difficulty level: Hard .

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