Neco 2021 Commerce Question 29
Practice objective / multiple choice question 29 from the 2021 Neco Commerce examination.
A firm can transport goods either by truck or by rail.\n\n- Truck: fixed cost per trip \(\text{₦}1,200\), variable cost \(\text{₦}0.45\) per ton‑km.\n- Rail: fixed cost per trip \(\text{₦}2,500\), variable cost \(\text{₦}0.30\) per ton‑km.\n\nThe firm needs to move 80 tons over a distance of 350 km. Determine which mode of transport gives the lower total cost and calculate the difference in cost between the two modes (in naira).
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About This Question
This is Neco 2021 Commerce Question 29. It is one of the objective questions from the 2021 Neco Commerce examination.
Difficulty level: Medium .
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