Neco Model Questions Vol1 2022 Commerce Question 33

Practice objective / multiple choice question 33 from the 2022 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2022 Commerce Objective / Multiple Choice Medium Difficulty
Question 33 NECO_MODEL_QUESTIONS_VOL1 • 2022 • COMMERCE • objective

A company has a marketing budget of N300,000. It can use direct mail at a cost of N150 per contact with a 2 % response rate, or social‑media ads at N0.50 per impression with a 5 % click‑through rate and a 4 % conversion rate from click to purchase. Each unit sold yields a profit of 20 % on the selling price of N5,000. Determine how many direct‑mail contacts and how many social‑media impressions the company should allocate to maximise expected profit, and state the maximum expected profit.

Answer Options

A. Direct‑mail contacts = 200, Social‑media impressions = 600,000, Maximum expected profit = N1,150,000
B. Direct‑mail contacts = 0, Social‑media impressions = 400,000, Maximum expected profit = N800,000
C. Direct‑mail contacts = 500, Social‑media impressions = 500,000, Maximum expected profit = N1,050,000
Correct Answer D. Direct‑mail contacts = 0, Social‑media impressions = 600,000, Maximum expected profit = N1,200,000
Correct Answer
D
Correct Option:
Direct‑mail contacts = 0, Social‑media impressions = 600,000, Maximum expected profit = N1,200,000

About This Question

This is Neco Model Questions Vol1 2022 Commerce Question 33. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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