Post Utme Futo 2024 Commerce Question 5

Practice objective / multiple choice question 5 from the 2024 Post Utme Futo Commerce examination.

Post Utme Futo 2024 Commerce Objective / Multiple Choice
Question 5 POST_UTME_FUTO • 2024 • COMMERCE • objective

A company is considering outsourcing its logistics to a third-party provider. The company's operations manager has estimated that the outsourcing will save ₦500,000 per year in costs, but will also result in a 10% decrease in customer satisfaction. What is the net effect of outsourcing on the company's profits?

Answer Options

A. The company's profits will increase by ₦500,000.
Correct Answer B. The company's profits will decrease by ₦500,000.
C. The company's profits will remain unchanged.
D. The company's profits will increase by ₦50,000.
Correct Answer
B
Correct Option:
The company's profits will decrease by ₦500,000.

About This Question

This is Post Utme Futo 2024 Commerce Question 5. It is one of the objective questions from the 2024 Post Utme Futo Commerce examination.

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