Post Utme Aaua 2020 Commerce Question 8

Practice objective / multiple choice question 8 from the 2020 Post Utme Aaua Commerce examination.

Post Utme Aaua 2020 Commerce Objective / Multiple Choice
Question 8 POST_UTME_AAUA • 2020 • COMMERCE • objective

A company is considering two different distribution channels for its new product. Channel A involves a high initial investment of ₦5 million and a fixed cost of ₦500,000 per unit distributed. Channel B involves a low initial investment of ₦2 million and a fixed cost of ₦250,000 per unit distributed. If the company expects to distribute 15,000 units, what is the total cost of distribution for each channel?

Answer Options

A. ₦7.5 million
Correct Answer B. ₦3.75 million
C. ₦10 million
D. ₦12.5 million
Correct Answer
B
Correct Option:
₦3.75 million

About This Question

This is Post Utme Aaua 2020 Commerce Question 8. It is one of the objective questions from the 2020 Post Utme Aaua Commerce examination.

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