Neco 2020 Commerce Question 12
Practice objective / multiple choice question 12 from the 2020 Neco Commerce examination.
An enterprise must move \(1,200\) kg of goods from Lagos to Kano. It can use road transport, which charges ₦0.80 per kilogram for the first 500 kg, ₦0.10 per kilogram for any additional kilograms, plus a fixed loading charge of ₦2,000. Alternatively, rail transport charges a flat rate of ₦0.55 per kilogram together with a handling charge of ₦3,500. Because of vehicle limits, at most 800 kg can be sent by road. Determine how many kilograms should be sent by road and by rail so that the total transportation cost is minimum, and state that minimum cost (in naira).
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About This Question
This is Neco 2020 Commerce Question 12. It is one of the objective questions from the 2020 Neco Commerce examination.
Difficulty level: Medium .
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