Post Utme Joseph Ayo Babalola University 2022 Commerce Question 33

Practice objective / multiple choice question 33 from the 2022 Post Utme Joseph Ayo Babalola University Commerce examination.

Post Utme Joseph Ayo Babalola University 2022 Commerce Objective / Multiple Choice
Question 33 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2022 • COMMERCE • objective

A firm is considering two different storage facilities for its inventory. Facility A costs ₦500 per unit to store, while Facility B costs ₦300 per unit to store. If the firm has 1000 units of inventory, and the cost of holding inventory is ₦200 per unit per year, which facility should the firm use?

Answer Options

A. Facility A
Correct Answer B. Facility B
C. Both facilities are equally expensive
D. Neither facility is suitable
Correct Answer
B
Correct Option:
Facility B

About This Question

This is Post Utme Joseph Ayo Babalola University 2022 Commerce Question 33. It is one of the objective questions from the 2022 Post Utme Joseph Ayo Babalola University Commerce examination.

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