Gce Model Questions Vol1 2018 Commerce Question 30

Practice objective / multiple choice question 30 from the 2018 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2018 Commerce Objective / Multiple Choice Medium Difficulty
Question 30 GCE_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • objective

A logistics firm operates a truck with a capacity of 20 tonnes. Fixed monthly costs (lease, driver salary, insurance) total \(\text{N}500{,}000\). Variable cost is \(\text{N}150\) per kilometre, independent of load. The freight rate is \(\text{N}25\) per tonne‑kilometre. (a) How many kilometres must the truck travel in a month, fully loaded, to break even? (b) If the average load factor is only 75%, how many kilometres are required to break even?

Answer Options

Correct Answer A. (a) 1,429 km; (b) 2,223 km
B. (a) 1,200 km; (b) 1,600 km
C. (a) 1,500 km; (b) 2,000 km
D. (a) 1,600 km; (b) 2,133 km
Correct Answer
A
Correct Option:
(a) 1,429 km; (b) 2,223 km

About This Question

This is Gce Model Questions Vol1 2018 Commerce Question 30. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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