Post Utme Madonna University 2022 Commerce Question 10

Practice objective / multiple choice question 10 from the 2022 Post Utme Madonna University Commerce examination.

Post Utme Madonna University 2022 Commerce Objective / Multiple Choice
Question 10 POST_UTME_MADONNA_UNIVERSITY • 2022 • COMMERCE • objective

A company is considering outsourcing its production to a foreign supplier. The supplier has offered to supply the goods at a price of 10 per unit, which is 20% lower than the company's current production cost. However, the company's logistics manager has warned that the transportation costs will be higher due to the longer distance. What is the net cost savings to the company?

Answer Options

A. ₦1.5 million
Correct Answer B. ₦2 million
C. ₦2.5 million
D. ₦3 million
Correct Answer
B
Correct Option:
₦2 million

About This Question

This is Post Utme Madonna University 2022 Commerce Question 10. It is one of the objective questions from the 2022 Post Utme Madonna University Commerce examination.

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