Waec Model Questions Vol1 2022 Economics Question 14
Practice objective / multiple choice question 14 from the 2022 Waec Model Questions Vol1 Economics examination.
A logistics firm transports goods from City A to City B using either rail or road. The fixed cost per trip by rail is ₦15,000 and the variable cost is ₦120 per ton. By road the fixed cost per trip is ₦8,000 and the variable cost is ₦200 per ton. The firm must move 500 tons each month and must ship at least 30 % of the tonnage by rail. A rail trip can carry a maximum of 300 tons; any excess requires an additional rail trip with the same fixed and variable costs. If any tonnage is shipped by road, the road fixed cost is incurred. Determine the combination of tons shipped by rail and by road that minimises the total monthly transport cost and state that minimum cost.
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About This Question
This is Waec Model Questions Vol1 2022 Economics Question 14. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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