Neco 2019 Commerce Question 27
Practice objective / multiple choice question 27 from the 2019 Neco Commerce examination.
An retailer transports goods either by using its own truck or by hiring a third‑party carrier.\nOwn truck: fixed monthly cost \(\text{₦}200,000\) plus \(\text{₦}10\) per kilometre.\nCarrier: charges \(\text{₦}70\) per kilometre. For any distance exceeding a certain threshold \(D\) kilometres, the carrier gives a 10% discount on the per‑kilometre rate for the excess distance.\nIf the retailer needs to transport \(4,000\) km in a month, determine the threshold distance \(D\) (in km) at which the retailer should switch from the carrier to its own truck to minimise monthly transport cost, and state the minimum monthly cost using the optimal mode.
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About This Question
This is Neco 2019 Commerce Question 27. It is one of the objective questions from the 2019 Neco Commerce examination.
Difficulty level: Medium .
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