Post Utme Esut 2022 Commerce Question 29

Practice objective / multiple choice question 29 from the 2022 Post Utme Esut Commerce examination.

Post Utme Esut 2022 Commerce Objective / Multiple Choice
Question 29 POST_UTME_ESUT • 2022 • COMMERCE • objective

A company is considering two different transportation options for its products. Option A involves a fixed cost of ₦500,000 and a variable cost of ₦200 per unit transported. Option B has a fixed cost of ₦300,000 and a variable cost of ₦300 per unit transported. If the company needs to transport 5,000 units, which option is more cost-effective?

Answer Options

Correct Answer A. Option A
B. Option B
C. Both options have the same cost-effectiveness
D. Neither option is cost-effective
Correct Answer
A
Correct Option:
Option A

About This Question

This is Post Utme Esut 2022 Commerce Question 29. It is one of the objective questions from the 2022 Post Utme Esut Commerce examination.

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