Neco Model Questions Vol1 2021 Commerce Question 41

Practice objective / multiple choice question 41 from the 2021 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2021 Commerce Objective / Multiple Choice Hard Difficulty
Question 41 NECO_MODEL_QUESTIONS_VOL1 • 2021 • COMMERCE • objective

A company aims to achieve \(1200\) GRPs for a product in a month. The target audience size is \(5{,}000{,}000\) people. They plan to use TV and radio, allocating \(70\%\) of the GRPs to TV. TV costs \(\N{,}150\) per GRP and radio costs \(\N{,}90\) per GRP. They consider adding a newspaper advertisement that costs \(\N{,}0.12\) per thousand impressions (CPM) and is expected to generate \(200{,}000\) impressions. Assuming \(1\) GRP equals \(1\%\) of the target audience, determine whether adding the newspaper reduces the total advertising cost while still achieving the \(1200\) GRPs target. If it does, state the new total cost and the amount saved.

Answer Options

A. Yes; new total cost = \N{,}156,000 and saving = \N{,}1,400
B. Yes; new total cost = \N{,}158,400 and saving = \N{,}0
C. Yes; new total cost = \N{,}157,200 and saving = \N{,}1,200
Correct Answer D. Yes; new total cost = \N{,}157,824 and saving = \N{,}576
Correct Answer
D
Correct Option:
Yes; new total cost = \N{,}157,824 and saving = \N{,}576

About This Question

This is Neco Model Questions Vol1 2021 Commerce Question 41. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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