Waec Model Questions Vol1 2018 Commerce Question 3

Practice objective / multiple choice question 3 from the 2018 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2018 Commerce Objective / Multiple Choice Medium Difficulty
Question 3 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • objective

A wholesaler can transport goods by two alternatives. Option A: fixed cost per trip ₦5,000 plus a variable cost of ₦120 per ton. Option B: no fixed cost, variable cost of ₦150 per ton, but a 10 % discount on the variable cost for any shipment exceeding 40 tons. If the wholesaler needs to ship 50 tons, which option gives the lower total cost? Also determine the tonnage at which both options would cost the same (break‑even point). Give the break‑even tonnage to two decimal places.

Answer Options

A. Option B; break‑even tonnage ≈ 350.00 tons
B. Option A; break‑even tonnage ≈ 310.50 tons
C. Option A; break‑even tonnage ≈ 250.00 tons
Correct Answer D. Option B; break‑even tonnage ≈ 293.33 tons
Correct Answer
D
Correct Option:
Option B; break‑even tonnage ≈ 293.33 tons

About This Question

This is Waec Model Questions Vol1 2018 Commerce Question 3. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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