Neco 2022 Commerce Question 23

Practice objective / multiple choice question 23 from the 2022 Neco Commerce examination.

Neco 2022 Commerce Objective / Multiple Choice Hard Difficulty
Question 23 NECO • 2022 • COMMERCE • objective

A company must store 10,000 units of product. Warehouse A can hold at most 6,000 units, charges a fixed monthly rent of \(\text{₦}150,000\) and a handling charge of \(\text{₦}5\) per unit stored. Warehouse B has unlimited capacity, charges a fixed monthly rent of \(\text{₦}80,000\) and a handling charge of \(\text{₦}8\) per unit stored. Determine how many units should be stored in each warehouse to minimise the total monthly cost, and state the minimum total cost.

Answer Options

A. 6000 units in A, 4000 units in B; minimum cost ₦300000
B. 5000 units in A, 5000 units in B; minimum cost ₦295000
C. 7000 units in A, 3000 units in B; minimum cost ₦289000
Correct Answer D. 6000 units in A, 4000 units in B; minimum cost ₦292000
Correct Answer
D
Correct Option:
6000 units in A, 4000 units in B; minimum cost ₦292000

About This Question

This is Neco 2022 Commerce Question 23. It is one of the objective questions from the 2022 Neco Commerce examination.

Difficulty level: Hard .

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