Waec Model Questions Vol1 2020 Agricultural Science Question 13
Practice objective / multiple choice question 13 from the 2020 Waec Model Questions Vol1 Agricultural Science examination.
A farmer produces 10 tonnes of fresh cassava per year. The market price is ₦150 per kg. The farmer has three marketing options:\n1) Sell directly to a processor at a contract price of ₦140 per kg; the processor pays a 5 % bonus on the total contract value if the farmer sells more than 9 tonnes.\n2) Sell at the open market, incurring a transport cost of ₦5 per kg and a marketing commission of 3 % of the gross sales.\n3) Process the cassava into garri. The conversion factor is 0.6 (i.e., 1 tonne fresh cassava yields 0.6 tonne garri). Garri sells for ₦300 per kg, but processing costs ₦40 per kg of garri produced.\nWhich option gives the highest net revenue and what is that net revenue (in ₦)?
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About This Question
This is Waec Model Questions Vol1 2020 Agricultural Science Question 13. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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