Post Utme Esut 2025 Commerce Question 40

Practice objective / multiple choice question 40 from the 2025 Post Utme Esut Commerce examination.

Post Utme Esut 2025 Commerce Objective / Multiple Choice
Question 40 POST_UTME_ESUT • 2025 • COMMERCE • objective

A company is considering two different distribution channels for its product: a direct sales force and a retail channel. The direct sales force has a fixed cost of ₦200,000 and a variable cost of ₦1,000 per unit, while the retail channel has a fixed cost of ₦100,000 and a variable cost of ₦500 per unit. If the company expects to sell 10,000 units through the direct sales force and 20,000 units through the retail channel, which channel should it choose?

Answer Options

A. The direct sales force
Correct Answer B. The retail channel
C. It depends on the expected response rate of each channel
D. It depends on the expected cost per unit of each channel
Correct Answer
B
Correct Option:
The retail channel

About This Question

This is Post Utme Esut 2025 Commerce Question 40. It is one of the objective questions from the 2025 Post Utme Esut Commerce examination.

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