Post Utme Joseph Ayo Babalola University 2024 Commerce Question 20

Practice objective / multiple choice question 20 from the 2024 Post Utme Joseph Ayo Babalola University Commerce examination.

Post Utme Joseph Ayo Babalola University 2024 Commerce Objective / Multiple Choice
Question 20 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2024 • COMMERCE • objective

A firm is considering two transportation options: Option A involves a fixed cost of ₦10,000 and a variable cost of ₦5 per unit, while Option B involves a fixed cost of ₦5,000 and a variable cost of ₦10 per unit. If the firm expects to transport 1,000 units, which option has a lower total cost?

Answer Options

Correct Answer A. Option A has a lower total cost.
B. Option B has a lower total cost.
C. Both options have the same total cost.
D. Neither option has a lower total cost.
Correct Answer
A
Correct Option:
Option A has a lower total cost.

About This Question

This is Post Utme Joseph Ayo Babalola University 2024 Commerce Question 20. It is one of the objective questions from the 2024 Post Utme Joseph Ayo Babalola University Commerce examination.

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support