Neco Model Questions Vol1 2024 Commerce Question 25

Practice objective / multiple choice question 25 from the 2024 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2024 Commerce Objective / Multiple Choice Hard Difficulty
Question 25 NECO_MODEL_QUESTIONS_VOL1 • 2024 • COMMERCE • objective

An advertising agency plans a TV campaign for a target audience of 2,500,000 people. The agency wants to achieve a total of 150 Gross Rating Points (GRPs). Each TV spot reaches 5 % of the target audience (i.e., a rating of 5). The cost of each spot is ₦120,000. A contingency of 7 % must be added to the total media‑buying cost. Determine (a) the minimum number of spots required, (b) the total media‑buying cost before adding contingency, (c) the total cost after adding contingency, and (d) the average cost per GRP achieved.

Answer Options

Correct Answer A. Spots: 30; Cost before contingency: ₦3,600,000; Cost after contingency: ₦3,852,000; Cost per GRP: ₦25,680
B. Spots: 28; Cost before contingency: ₦3,360,000; Cost after contingency: ₦3,595,200; Cost per GRP: ₦23,968
C. Spots: 30; Cost before contingency: ₦3,600,000; Cost after contingency: ₦3,852,000; Cost per GRP: ₦26,000
D. Spots: 32; Cost before contingency: ₦3,840,000; Cost after contingency: ₦4,108,800; Cost per GRP: ₦27,392
Correct Answer
A
Correct Option:
Spots: 30; Cost before contingency: ₦3,600,000; Cost after contingency: ₦3,852,000; Cost per GRP: ₦25,680

About This Question

This is Neco Model Questions Vol1 2024 Commerce Question 25. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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