POST UTME DELSU 2023 Commerce | Objective

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Question 1
A company's inventory management system uses the Economic Order Quantity (EOQ) model to determine the optimal order quantity. The EOQ model is given by the formula: EOQ = √(2DS/C), where D is the annual demand, S is the ordering cost, and C is the holding cost. If the annual demand is 1000 units, the ordering cost is ₦50 per order, and the holding cost is ₦10 per unit, what is the optimal order quantity?
Correct A. 500 units
B. 1000 units
C. 2000 units
D. 5000 units

Correct Answer: A

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Question 2
A firm's marketing strategy involves a mix of advertising and sales promotions. The advertising budget is ₦1,000,000, and the sales promotion budget is ₦500,000. If the total marketing budget is ₦2,500,000, what is the ratio of the advertising budget to the sales promotion budget?
A. 1:1
Correct B. 2:1
C. 1:2
D. 3:1

Correct Answer: B

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Question 3
A company's transportation costs are ₦10,000 per ton for the first 100 tons and ₦8,000 per ton for the next 200 tons. If the total transportation cost is ₦1,800,000, how many tons of goods were transported?
A. 200 tons
B. 300 tons
Correct C. 400 tons
D. 500 tons

Correct Answer: C

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Question 4
A firm's insurance policy has a deductible of ₦50,000 and a maximum payout of ₦500,000. If the firm's annual loss is ₦750,000, what is the insurance company's payout?
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 5
A company's stock control system uses the First-In-First-Out (FIFO) method to determine the cost of goods sold. If the company has 100 units of stock with a cost of ₦50 per unit and 50 units of stock with a cost of ₦75 per unit, what is the total cost of goods sold if the company sells 150 units?
A. ₦7,500
B. ₦8,000
Correct C. ₦9,000
D. ₦10,000

Correct Answer: C

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Question 6
A company's marketing strategy is to increase sales by 20% within the next quarter. If the current sales revenue is ₦1,500,000, what is the expected sales revenue after the increase?
A. ₦1,800,000
B. ₦1,600,000
Correct C. ₦1,800,000
D. ₦1,600,000

Correct Answer: C

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Question 7
A firm has a warehouse with a capacity of 5,000 units. If 3,000 units are already stored, what is the maximum number of units that can be added to the warehouse?
Correct A. 2,000
B. 3,000
C. 4,000
D. 5,000

Correct Answer: A

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Question 8
A consumer purchases a product for ₦10,000. If the product has a 10% discount, how much will the consumer pay?
Correct A. ₦9,000
B. ₦9,500
C. ₦10,000
D. ₦10,500

Correct Answer: A

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Question 9
A company has a policy of paying its employees a 5% bonus on their annual salary. If an employee's annual salary is ₦200,000, what is the bonus amount?
Correct A. ₦10,000
B. ₦9,000
C. ₦8,000
D. ₦7,000

Correct Answer: A

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Question 10
A firm has a warehouse with a capacity of 5,000 units. If 3,000 units are already stored, what is the percentage of the warehouse that is occupied?
Correct A. 60%
B. 50%
C. 40%
D. 30%

Correct Answer: A

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Question 11
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve

Correct Answer: A

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Question 12
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1. If the firm's marginal revenue function is MR(x) = 4x + 5, then the firm's total revenue function is
Correct A. ( R(x) = x^2 + 5x + 5 )
B. ( R(x) = 2x^2 + 5x + 1 )
C. ( R(x) = x^2 + 5x + 1 )
D. ( R(x) = 2x^2 + 5x + 5 )

Correct Answer: A

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Question 13
A company has a warehouse with a capacity of 1000 units. The company receives a shipment of 500 units and then sells 200 units. The company's inventory level is now
A. 500
B. 600
Correct C. 700
D. 800

Correct Answer: C

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Question 14
A firm's cost function is given by C(x) = 2x^2 + 5x + 1. If the firm's marginal cost function is MC(x) = 4x + 5, then the firm's average cost function is
Correct A. ( AC(x) = 2x + 5 )
B. ( AC(x) = 4x + 5 )
C. ( AC(x) = x^2 + 5x + 5 )
D. ( AC(x) = 2x^2 + 5x + 1 )

Correct Answer: A

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Question 15
A company has a warehouse with a capacity of 1000 units. The company receives a shipment of 500 units and then sells 200 units. The company's inventory level is now
A. 500
B. 600
Correct C. 700
D. 800

Correct Answer: C

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Question 16
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation:
A. Open Market Operations (OMO)
B. Reserve Requirements
C. Discount Rate
Correct D. All of the above

Correct Answer: D

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Question 17
A company's marketing mix is a combination of the following elements:
Correct A. Product, Price, Place, Promotion
B. Product, Price, Place, People
C. Product, Price, Promotion, Process
D. Product, Place, Promotion, People

Correct Answer: A

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Question 18
The following is a characteristic of a perfect market:
A. Free entry and exit
B. Perfect information
C. Homogeneous products
Correct D. All of the above

Correct Answer: D

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Question 19
A company's break-even point is the point at which:
A. Total revenue equals total fixed costs
B. Total revenue equals total variable costs
Correct C. Total revenue equals total fixed and variable costs
D. Total revenue equals total contribution margin

Correct Answer: C

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Question 20
The following is a characteristic of a monopolistically competitive market:
Correct A. Many firms producing differentiated products
B. Free entry and exit
C. Perfect information
D. All of the above

Correct Answer: A

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Question 21
A company's sole trader has a warehouse with a capacity of 10,000 units. The company's sales manager has ordered 8,000 units of a new product. If the warehouse is currently 70% full, how many units of the new product can be stored in the warehouse?
A. 2,000
B. 4,000
Correct C. 6,000
D. 8,000

Correct Answer: C

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Question 22
A foreign trade company has a contract to supply 5,000 units of a product to a customer in another country. If the company has already shipped 2,000 units and the remaining units are stored in a warehouse, what is the percentage of the warehouse that is occupied?
A. 40%
B. 50%
Correct C. 60%
D. 70%

Correct Answer: C

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Question 23
A company's insurance policy has a deductible of ₦10,000. If the company's annual premium is ₦50,000 and it makes a claim of ₦20,000, what is the company's net insurance cost?
A. ₦30,000
Correct B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: B

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Question 24
A company's sole trader has a warehouse with a capacity of 10,000 units. The company's sales manager has ordered 8,000 units of a new product. If the warehouse is currently 70% full, what is the total value of the products stored in the warehouse if the new product costs ₦1,000 per unit?
A. ₦700,000
B. ₦800,000
Correct C. ₦900,000
D. ₦1,000,000

Correct Answer: C

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Question 25
A company's insurance policy has a deductible of ₦10,000. If the company's annual premium is ₦50,000 and it makes a claim of ₦20,000, what is the company's net insurance cost?
A. ₦30,000
Correct B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: B

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