Neco 2025 Commerce Question 16
Practice objective / multiple choice question 16 from the 2025 Neco Commerce examination.
An importer forecasts an annual demand of \(12{,}000\) units of product X. The ordering cost per order is \(\text{₦}500\). The unit cost is \(\text{₦}200\) per unit, and the holding cost is \(20\%\) of the unit cost per year. The warehouse can store at most \(1{,}500\) units. If an order quantity exceeds \(800\) units, the supplier gives a \(5\%\) discount on the unit cost for the whole order. Determine the order quantity that minimises the total relevant cost (ordering plus holding) while respecting the storage limit and the discount condition, and compute the minimum total relevant cost (in ₦).
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About This Question
This is Neco 2025 Commerce Question 16. It is one of the objective questions from the 2025 Neco Commerce examination.
Difficulty level: Hard .
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