Waec Model Questions Vol1 2019 Commerce Question 11
Practice objective / multiple choice question 11 from the 2019 Waec Model Questions Vol1 Commerce examination.
A trading firm stores a product in a warehouse. Each unit occupies 0.02 m³ and the warehouse height is 3 m. The warehouse rent is ₦150 per m² per month. The product's unit cost is ₦500 and the carrying rate is 25 % per annum. The ordering cost per order is ₦2 000 and the annual demand is 12 000 units. The usable floor area of the warehouse is 3 m². Assuming the firm wants to minimise its total annual cost, what is the maximum order quantity (in units) that can be ordered each time without exceeding the available floor space?
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About This Question
This is Waec Model Questions Vol1 2019 Commerce Question 11. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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