Gce Model Questions Vol1 2017 Commerce Question 21

Practice objective / multiple choice question 21 from the 2017 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2017 Commerce Objective / Multiple Choice Medium Difficulty
Question 21 GCE_MODEL_QUESTIONS_VOL1 • 2017 • COMMERCE • objective

A company can transport goods either by road or by rail. The road option has a fixed cost of \(1500\) per trip and a variable cost of \(12\) per kilometre. The rail option has a fixed cost of \(2500\) per trip and a variable cost of \(8\) per kilometre. The distance to be covered is between \(200\) km and \(500\) km. For which distances is the road option cheaper than the rail option? Also state the distance at which the two options cost the same.

Answer Options

A. Road is cheaper for distances between 200 km and 300 km (excluding 300 km). The two options cost the same at 300 km.
Correct Answer B. Road is cheaper for distances between 200 km and 250 km (excluding 250 km). The two options cost the same at 250 km.
C. Road is cheaper for distances between 200 km and 250 km (including 250 km). The two options cost the same at 250 km.
D. Road is cheaper for distances between 150 km and 250 km (excluding 250 km). The two options cost the same at 250 km.
Correct Answer
B
Correct Option:
Road is cheaper for distances between 200 km and 250 km (excluding 250 km). The two options cost the same at 250 km.

About This Question

This is Gce Model Questions Vol1 2017 Commerce Question 21. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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