A shop needs exactly $800$ units of a product each week. It can order by telephone or by email.

- Each telephone call costs $₦120$ and can order up to $200$ units (no per‑unit charge).
- Each email costs a fixed $₦80$ plus a handling charge of $₦0.50$ per unit ordered, and an email can order at most $300$ units.

Determine how many telephone calls and how many emails the shop should use to obtain the $800$ units at the lowest total communication cost, and state that minimum cost in Naira.

Question

A shop needs exactly $800$ units of a product each week. It can order by telephone or by email.

- Each telephone call costs $₦120$ and can order up to $200$ units (no per‑unit charge).
- Each email costs a fixed $₦80$ plus a handling charge of $₦0.50$ per unit ordered, and an email can order at most $300$ units.

Determine how many telephone calls and how many emails the shop should use to obtain the $800$ units at the lowest total communication cost, and state that minimum cost in Naira.

Accepted Answer

4 telephone calls, 0 emails; minimum cost = ₦480

Gce Model Questions Vol1 2018 Commerce Question 42

Answer Options

About This Question

Master the Exam!