Neco 2017 Commerce Question 15

Practice objective / multiple choice question 15 from the 2017 Neco Commerce examination.

Neco 2017 Commerce Objective / Multiple Choice Medium Difficulty
Question 15 NECO • 2017 • COMMERCE • objective

A retailer must transport 5,000 kg of goods from Lagos to Kano. Two alternatives are available.\n\nRoute 1: Lagos \u2192 Ilorin (300 km) by road at \(\N0.45\) per kg per km, then Ilorin \u2192 Kano (800 km) by rail at \(\N0.30\) per kg per km. A handling surcharge of \N5,000 is incurred at Ilorin.\n\nRoute 2: Direct road Lagos \u2192 Kano (1,200 km) at \(\N0.40\) per kg per km, with a fuel surcharge of 12\% on the freight cost.\n\nCalculate the total cost of each route (to the nearest naira) and indicate which route is cheaper.

Answer Options

A. Route 1 costs \N1,880,000; Route 2 costs \N2,688,000; Cheaper route: Route 2
B. Route 1 costs \N1,875,000; Route 2 costs \N2,688,000; Cheaper route: Route 1
Correct Answer C. Route 1 costs \N1,880,000; Route 2 costs \N2,688,000; Cheaper route: Route 1
D. Route 1 costs \N1,880,000; Route 2 costs \N2,640,000; Cheaper route: Route 1
Correct Answer
C
Correct Option:
Route 1 costs \N1,880,000; Route 2 costs \N2,688,000; Cheaper route: Route 1

About This Question

This is Neco 2017 Commerce Question 15. It is one of the objective questions from the 2017 Neco Commerce examination.

Difficulty level: Medium .

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