Neco Model Questions Vol1 2017 Commerce Question 27

Practice objective / multiple choice question 27 from the 2017 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2017 Commerce Objective / Multiple Choice Medium Difficulty
Question 27 NECO_MODEL_QUESTIONS_VOL1 • 2017 • COMMERCE • objective

A company must transport 30 tons of goods over a distance of 800 km. Two truck types are available:\n\(\text{Truck A: maximum load 20 tons, fixed cost per trip }\₦50{,}000,\text{ fuel consumption when empty }30\,\text{L/100 km, reduction }0.2\,\text{L/100 km per ton loaded}\)\n\(\text{Truck B: maximum load 15 tons, fixed cost per trip }\₦40{,}000,\text{ fuel consumption when empty }25\,\text{L/100 km, reduction }0.15\,\text{L/100 km per ton loaded}\)\nFuel price is \(\₦150\) per litre. Each trip must carry the maximum possible load for the truck used. Determine the minimum total cost (in naira) to transport the whole 30 tons, using any combination of the two truck types. State the minimum cost.

Answer Options

A. ₦133,900
B. ₦135,200
C. ₦136,500
Correct Answer D. ₦134,600
Correct Answer
D
Correct Option:
₦134,600

About This Question

This is Neco Model Questions Vol1 2017 Commerce Question 27. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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