Post Utme Covenant University 2021 Commerce Question 2

Practice objective / multiple choice question 2 from the 2021 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2021 Commerce Objective / Multiple Choice
Question 2 POST_UTME_COVENANT_UNIVERSITY • 2021 • COMMERCE • objective

A company is considering two transportation options for its products: Option A, which has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit, and Option B, which has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the company plans to transport 1000 units, which option is more cost-effective?

Answer Options

A. Option A
B. Option B
C. Option A is more cost-effective
Correct Answer D. Option B is more cost-effective
Correct Answer
D
Correct Option:
Option B is more cost-effective

About This Question

This is Post Utme Covenant University 2021 Commerce Question 2. It is one of the objective questions from the 2021 Post Utme Covenant University Commerce examination.

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