Post Utme Crawford University 2024 Commerce Question 17

Practice objective / multiple choice question 17 from the 2024 Post Utme Crawford University Commerce examination.

Post Utme Crawford University 2024 Commerce Objective / Multiple Choice
Question 17 POST_UTME_CRAWFORD_UNIVERSITY • 2024 • COMMERCE • objective

A firm is considering two different transportation modes to deliver its products. 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 firm needs to deliver 1,000 units, which mode should it choose?

Answer Options

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

About This Question

This is Post Utme Crawford University 2024 Commerce Question 17. It is one of the objective questions from the 2024 Post Utme Crawford University Commerce examination.

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