Post Utme Bells University 2021 Commerce Question 9

Practice objective / multiple choice question 9 from the 2021 Post Utme Bells University Commerce examination.

Post Utme Bells University 2021 Commerce Objective / Multiple Choice
Question 9 POST_UTME_BELLS_UNIVERSITY • 2021 • COMMERCE • objective

A firm is considering two different modes of transportation to transport its products. Mode A costs ₦500 per unit and has a fixed cost of ₦100,000. Mode B costs ₦300 per unit and has a fixed cost of ₦200,000. If the firm transports 1,000 units of the product, which mode will result in lower total costs?

Answer Options

A. Mode A
Correct Answer B. Mode B
C. Both modes will result in the same total costs.
D. Neither mode will result in lower total costs.
Correct Answer
B
Correct Option:
Mode B

About This Question

This is Post Utme Bells University 2021 Commerce Question 9. It is one of the objective questions from the 2021 Post Utme Bells University Commerce examination.

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support