Neco 2024 Commerce Question 35
Practice objective / multiple choice question 35 from the 2024 Neco Commerce examination.
An advertising campaign costs \(\text{₦}2,500,000\). It reaches 500,000 people, each seeing the advertisement an average of 3 times. Historical data shows that each exposure raises the probability of purchase by 0.02\% (i.e., 0.0002), independently of other exposures. The product price is \(\text{₦}8,000\) and the profit margin is 25\% of the price. Assuming the reached people constitute the whole target market, estimate the expected profit from the campaign and compute the return on investment (ROI) as a percentage, rounded to the nearest whole percent. Give the ROI value.
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About This Question
This is Neco 2024 Commerce Question 35. It is one of the objective questions from the 2024 Neco Commerce examination.
Difficulty level: Hard .
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