Post Utme Lautech 2024 Commerce Question 23

Practice objective / multiple choice question 23 from the 2024 Post Utme Lautech Commerce examination.

Post Utme Lautech 2024 Commerce Objective / Multiple Choice

Question 23 POST_UTME_LAUTECH • 2024 • COMMERCE • objective

A company is considering two different transportation options for its products. Option A involves a fixed cost of ₦500,000 and a variable cost of ₦2 per unit. Option B involves a fixed cost of ₦300,000 and a variable cost of ₦3 per unit. If the company expects to sell 10,000 units, which option is more cost-effective?

Answer Options

Correct Answer A. Option A

B. Option B

C. Both options are equally cost-effective

D. Neither option is cost-effective

Correct Answer

Correct Option:

Option A

About This Question

This is Post Utme Lautech 2024 Commerce Question 23. It is one of the objective questions from the 2024 Post Utme Lautech Commerce examination.

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