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6 December, 21:59

Which of the following is the most profitable investment for a cell phone company earning $10 per plan contract?

a. Opening a new store location with $200 daily operating cost, generating 30 new plans per day

b. Redesigning website at $50 daily operating cost, generating 10 new plans per day

c. Creating television commercial at $25 daily operating cost, generating 15 new plans per day

d. Offering free $10 gift for every new plan, generating 40 new plans per day

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  1. 6 December, 22:20
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    c. Creating television commercial at $25 daily operating cost, generating 15 new plans per day

    Explanation:

    a) Cost 200, revenue 30 x 10 = 300

    Profit = 300 - 200 = 100

    b) cost 50, revenue 10x10 = 100

    Profit = 100 - 50 = 50

    c) cost 25, revenue 15 x 10 = 150

    Profit = 150-25 = 125

    d) cost 10 (discount)

    revenue = 10

    profit = 0
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