Post Utme Al Hikmah University 2022 Commerce Question 34

Practice objective / multiple choice question 34 from the 2022 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2022 Commerce Objective / Multiple Choice
Question 34 POST_UTME_AL-HIKMAH_UNIVERSITY • 2022 • COMMERCE • objective

A firm is considering two different modes of transportation to deliver its products to customers. Mode A costs 10 units per unit delivered and has a fixed cost of 100 units. Mode B costs 8 units per unit delivered and has a fixed cost of 50 units. If the firm needs to deliver 20 units, which mode of transportation should it choose?

Answer Options

A. Mode A
Correct Answer B. Mode B
C. Both modes are equally expensive
D. Neither mode is suitable
Correct Answer
B
Correct Option:
Mode B

About This Question

This is Post Utme Al Hikmah University 2022 Commerce Question 34. It is one of the objective questions from the 2022 Post Utme Al Hikmah University Commerce examination.

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