Post Utme Joseph Ayo Babalola University 2019 Commerce Question 35

Practice objective / multiple choice question 35 from the 2019 Post Utme Joseph Ayo Babalola University Commerce examination.

Post Utme Joseph Ayo Babalola University 2019 Commerce Objective / Multiple Choice
Question 35 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2019 • COMMERCE • objective

A company is considering two different transportation modes for its products. Mode A involves a high fixed cost but a low variable cost, while Mode B involves a low fixed cost but a high variable cost. If the company expects to transport 10,000 units per year for 5 years, which mode should it choose if it wants to minimize its total transportation costs?

Answer Options

Correct Answer A. Mode A
B. Mode B
C. Both modes are equally cost-effective
D. More information is needed to make a decision
Correct Answer
A
Correct Option:
Mode A

About This Question

This is Post Utme Joseph Ayo Babalola University 2019 Commerce Question 35. It is one of the objective questions from the 2019 Post Utme Joseph Ayo Babalola University Commerce examination.

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