Gce Model Questions Vol1 2021 Commerce Question 34

Practice objective / multiple choice question 34 from the 2021 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2021 Commerce Objective / Multiple Choice Medium Difficulty
Question 34 GCE_MODEL_QUESTIONS_VOL1 • 2021 • COMMERCE • objective

A transport company operates a truck with a payload capacity of 20 tonnes. Fixed daily costs (driver wages, insurance) are \(\text{₦}15{,}000\). Variable fuel cost is \(\text{₦}0.45\) per kilometre per tonne carried. The truck travels 250 km per day, but on average only 80 % of its capacity is utilized. Depreciation is \(\text{₦}0.10\) per kilometre. A maintenance surcharge of 5 % is added to the sum of fuel and depreciation costs. Calculate the total cost per tonne‑kilometre for the operation.

Answer Options

A. ₦4.50 per tonne‑kilometre
B. ₦5.10 per tonne‑kilometre
C. ₦3.95 per tonne‑kilometre
Correct Answer D. ₦4.23 per tonne‑kilometre
Correct Answer
D
Correct Option:
₦4.23 per tonne‑kilometre

About This Question

This is Gce Model Questions Vol1 2021 Commerce Question 34. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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