Neco Model Questions Vol1 2018 Commerce Question 11

Practice objective / multiple choice question 11 from the 2018 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2018 Commerce Objective / Multiple Choice Medium Difficulty
Question 11 NECO_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • objective

A telecom company offers a prepaid plan where the first 2 minutes of a call cost ₦150 total and each additional minute costs ₦40. There is a fixed activation fee of ₦200 per call. The company also adds a 5 % service tax on the total amount before tax. A customer makes a call lasting 7 minutes and 30 seconds, and the company charges a full minute for any part of a minute used. (a) Determine the total amount the customer must pay. (b) If the company's cost for handling that call is ₦120, calculate the profit‑margin percentage earned on the call.

Answer Options

Correct Answer A. Total amount = ₦619.5; profit‑margin ≈ 80.63 %
B. Total amount = ₦625.5; profit‑margin ≈ 82.10 %
C. Total amount = ₦610.0; profit‑margin ≈ 78.45 %
D. Total amount = ₦599.5; profit‑margin ≈ 77.20 %
Correct Answer
A
Correct Option:
Total amount = ₦619.5; profit‑margin ≈ 80.63 %

About This Question

This is Neco Model Questions Vol1 2018 Commerce Question 11. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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