Post Utme Uniport 2021 Commerce Question 22

Practice objective / multiple choice question 22 from the 2021 Post Utme Uniport Commerce examination.

Post Utme Uniport 2021 Commerce Objective / Multiple Choice
Question 22 POST_UTME_UNIPORT • 2021 • COMMERCE • objective

A company is considering two different storage facilities for its inventory. Facility A has a capacity of 10,000 units and a storage cost of ₦5 per unit per month. Facility B has a capacity of 20,000 units and a storage cost of ₦3 per unit per month. If the company expects to store 15,000 units of inventory, which facility should it choose and why?

Answer Options

A. Facility A because it has a lower storage cost.
B. Facility B because it has a higher storage capacity.
C. Facility A because it has a higher storage capacity.
Correct Answer D. Facility B because it has a lower storage cost.
Correct Answer
D
Correct Option:
Facility B because it has a lower storage cost.

About This Question

This is Post Utme Uniport 2021 Commerce Question 22. It is one of the objective questions from the 2021 Post Utme Uniport Commerce examination.

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