Waec Model Questions Vol1 2024 Commerce Question 50

Practice objective / multiple choice question 50 from the 2024 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2024 Commerce Objective / Multiple Choice Hard Difficulty
Question 50 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • COMMERCE • objective

A company runs two advertising campaigns for a new product. Campaign A uses TV ads costing ₦2,500,000, reaches 1,200,000 viewers and has a conversion rate of 2.5% with each buyer paying ₦5,000. Campaign B uses online banner ads costing ₦1,200,000, reaches 800,000 users and has a conversion rate of 4%, but a 10% discount is offered to those customers, reducing the average purchase price to ₦4,050. Each campaign also incurs a fixed overhead of ₦300,000. Which campaign yields the higher net profit and by how much?

Answer Options

A. Campaign B by ₦-3,200,000
B. Campaign A by ₦15,750,000
Correct Answer C. Campaign A by ₦19,100,000
D. Campaign B by ₦12,300,000
Correct Answer
C
Correct Option:
Campaign A by ₦19,100,000

About This Question

This is Waec Model Questions Vol1 2024 Commerce Question 50. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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