Neco 2021 Commerce Question 7

Practice objective / multiple choice question 7 from the 2021 Neco Commerce examination.

Neco 2021 Commerce Objective / Multiple Choice Hard Difficulty
Question 7 NECO • 2021 • COMMERCE • objective

A small business uses two mobile‑phone communication plans.\n\nPlan A: fixed monthly fee of \(₦5,000\) plus \(₦20\) for each minute of call.\n\nPlan B: fixed fee of \(₦8,000\), the first 200 minutes are charged at \(₦15\) per minute and each additional minute at \(₦10\).\n\nBoth plans charge \(₦5\) per text message.\n\nIn a particular month the business makes \(350\) minutes of calls and sends \(120\) texts.\n\n(a) Which plan results in the lower total monthly cost and by how much?\n(b) Ignoring texts, determine the smallest number of call minutes for which the two plans would cost the same.

Answer Options

A. Plan A cheaper by ₦1000; break‑even at 350 minutes
B. Plan B cheaper by ₦500; break‑even at 380 minutes
C. Plan B cheaper by ₦200; break‑even at 420 minutes
Correct Answer D. Plan A cheaper by ₦500; break‑even at 400 minutes
Correct Answer
D
Correct Option:
Plan A cheaper by ₦500; break‑even at 400 minutes

About This Question

This is Neco 2021 Commerce Question 7. It is one of the objective questions from the 2021 Neco Commerce examination.

Difficulty level: Hard .

View More Neco 2021 Commerce Questions More Neco Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support