Post Utme Rhema University 2020 Commerce Question 32

Practice objective / multiple choice question 32 from the 2020 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2020 Commerce Objective / Multiple Choice
Question 32 POST_UTME_RHEMA_UNIVERSITY • 2020 • COMMERCE • objective

A firm is considering two different transportation modes to deliver its products to customers. Mode A has a fixed cost of ₦10,000 and a variable cost of ₦5 per unit, while Mode B has a fixed cost of ₦20,000 and a variable cost of ₦3 per unit. If the firm needs to deliver 10,000 units, which mode is more cost-effective?

Answer Options

Correct Answer A. Mode A
B. Mode B
C. Both modes are equally cost-effective
D. Neither mode is cost-effective
Correct Answer
A
Correct Option:
Mode A

About This Question

This is Post Utme Rhema University 2020 Commerce Question 32. It is one of the objective questions from the 2020 Post Utme Rhema University Commerce examination.

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