Post Utme Lead City University 2022 Commerce Question 4

Practice objective / multiple choice question 4 from the 2022 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2022 Commerce Objective / Multiple Choice
Question 4 POST_UTME_LEAD_CITY_UNIVERSITY • 2022 • COMMERCE • objective

A firm is considering two different modes of transportation to transport its goods. Mode A costs ₦100 per unit of goods transported and has a fixed cost of ₦10,000. Mode B costs ₦120 per unit of goods transported and has a fixed cost of ₦20,000. If the firm needs to transport 1,000 units of goods, which mode of transportation should it choose?

Answer Options

Correct Answer A. Mode A
B. Mode B
C. Both modes are equally expensive
D. Neither mode is suitable
Correct Answer
A
Correct Option:
Mode A

About This Question

This is Post Utme Lead City University 2022 Commerce Question 4. It is one of the objective questions from the 2022 Post Utme Lead City University Commerce examination.

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