Gce Model Questions Vol1 2020 Commerce Question 7

Practice objective / multiple choice question 7 from the 2020 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2020 Commerce Objective / Multiple Choice Medium Difficulty
Question 7 GCE_MODEL_QUESTIONS_VOL1 • 2020 • COMMERCE • objective

A firm can ship goods either by road or by rail. Road transport costs a fixed \(£120\) per shipment plus \(£0.45\) per kilogram. Rail transport costs a fixed \(£200\) per shipment plus \(£0.30\) per kilogram, but a rail shipment must contain at least 400 kg. Determine the range of shipment weights for which road transport is cheaper than rail, and state the cost of a 500 kg shipment using the cheaper method.

Answer Options

A. Road is cheaper for 400 kg ≤ weight < 533 kg; cost for 500 kg = £340
Correct Answer B. Road is cheaper for 400 kg ≤ weight < 533 kg; cost for 500 kg = £345
C. Road is cheaper for 350 kg ≤ weight < 533 kg; cost for 500 kg = £340
D. Road is cheaper for 400 kg ≤ weight < 600 kg; cost for 500 kg = £350
Correct Answer
B
Correct Option:
Road is cheaper for 400 kg ≤ weight < 533 kg; cost for 500 kg = £345

About This Question

This is Gce Model Questions Vol1 2020 Commerce Question 7. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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