Neco 2023 Commerce Question 48

Practice objective / multiple choice question 48 from the 2023 Neco Commerce examination.

Neco 2023 Commerce Objective / Multiple Choice Hard Difficulty
Question 48 NECO • 2023 • COMMERCE • objective

ABC Ltd. has a total advertising budget of \(\text{₦}500{,}000\) to be spent on TV, radio and online media. The expected reach (in thousands of people) per \(\text{₦}10{,}000\) spent is: TV - 12, radio - 8, online - 15. However, for each additional \(\text{₦}10{,}000\) allocated to the same medium beyond the first \(\text{₦}100{,}000\), the reach per \(\text{₦}10{,}000\) falls by 10 % of its original value for that medium. The firm must allocate at least \(\text{₦}50{,}000\) to each medium. Determine the allocation (in multiples of \(\text{₦}10{,}000\)) that maximises total reach and state the maximum reach (in people).

Answer Options

A. TV \(\text{₦}150,000\), radio \(\text{₦}150,000\), online \(\text{₦}200,000\); maximum reach = 610,000 people
Correct Answer B. TV \(\text{₦}100,000\), radio \(\text{₦}100,000\), online \(\text{₦}300,000\); maximum reach = 620,000 people
C. TV \(\text{₦}150,000\), radio \(\text{₦}100,000\), online \(\text{₦}250,000\); maximum reach = 615,000 people
D. TV \(\text{₦}200,000\), radio \(\text{₦}100,000\), online \(\text{₦}200,000\); maximum reach = 600,000 people
Correct Answer
B
Correct Option:
TV \(\text{₦}100,000\), radio \(\text{₦}100,000\), online \(\text{₦}300,000\); maximum reach = 620,000 people

About This Question

This is Neco 2023 Commerce Question 48. It is one of the objective questions from the 2023 Neco Commerce examination.

Difficulty level: Hard .

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