Neco 2019 Commerce Question 39
Practice objective / multiple choice question 39 from the 2019 Neco Commerce examination.
A logistics company operates a truck with a fixed daily cost of ₦45,000 and a variable cost of ₦120 per kilometre. The truck can carry a maximum of 20 tonnes. The company charges a freight rate of ₦250 per tonne‑kilometre. In practice the truck is loaded on average at 65 % of its capacity on each trip. What is the minimum distance (in km) the truck must travel in a day for total revenue to equal total cost? Give the smallest whole number of kilometres that achieves break‑even.
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About This Question
This is Neco 2019 Commerce Question 39. It is one of the objective questions from the 2019 Neco Commerce examination.
Difficulty level: Medium .
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