Waec Model Questions Vol1 2021 Commerce Question 41

A mobile operator plans to launch a new data plan. The plan includes a fixed monthly base fee (N) and charges for data used beyond the first 5 GB at ₦200 per GB. If a subscriber uses more than 20 GB in a month, the per‑GB charge for the usage beyond 20 GB is reduced by 10 %. The operator expects 10,000 subscribers. Historical data shows that 30 % of subscribers will use an average of 25 GB per month, while the remaining 70 % will use an average of 15 GB per month. Fixed monthly operating cost is ₦2,500,000 and the variable cost of providing data is ₦150 per GB. The operator wants to earn at least ₦5,000,000 profit per month. What is the minimum base fee N (in Naira) that must be charged to meet the profit target?