Post Utme Coal City University 2025 Commerce Question 12

Practice objective / multiple choice question 12 from the 2025 Post Utme Coal City University Commerce examination.

Post Utme Coal City University 2025 Commerce Objective / Multiple Choice
Question 12 POST_UTME_COAL_CITY_UNIVERSITY • 2025 • COMMERCE • objective

A company is considering two different transportation modes to move goods from a factory to a warehouse. Mode A costs ₦500 per unit and has a fixed cost of ₦10,000. Mode B costs ₦300 per unit and has a fixed cost of ₦20,000. If the company needs to transport 100 units, which mode should it choose?

Answer Options

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

About This Question

This is Post Utme Coal City University 2025 Commerce Question 12. It is one of the objective questions from the 2025 Post Utme Coal City University Commerce examination.

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