Gce Model Questions Vol1 2021 Commerce Question 18

Practice objective / multiple choice question 18 from the 2021 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2021 Commerce Objective / Multiple Choice Medium Difficulty
Question 18 GCE_MODEL_QUESTIONS_VOL1 • 2021 • COMMERCE • objective

A company must ship 10 tonnes of goods from Lagos to Kano. Two routes are available:\n\nRoute A: direct distance 900 km, fuel cost \(\text{₦}150\) per km, driver allowance \(\text{₦}20{,}000\) per day, journey time 2 days.\nRoute B: via Abuja, total distance 1,100 km, fuel cost \(\text{₦}130\) per km, driver allowance \(\text{₦}18{,}000\) per day, journey time 3 days.\nLoading and unloading at each end cost \(\text{₦}5{,}000\) each. Calculate the total cost per tonne for each route and state which route is cheaper.

Answer Options

A. Route A is cheaper; cost per tonne = \(\text{₦}20,300\)
Correct Answer B. Route A is cheaper; cost per tonne = \(\text{₦}18{,}500\)
C. Both routes have the same cost per tonne = \(\text{₦}19,000\)
D. Route B is cheaper; cost per tonne = \(\text{₦}19,200\)
Correct Answer
B
Correct Option:
Route A is cheaper; cost per tonne = \(\text{₦}18{,}500\)

About This Question

This is Gce Model Questions Vol1 2021 Commerce Question 18. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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