Neco Model Questions Vol1 2017 Economics Question 31
Practice objective / multiple choice question 31 from the 2017 Neco Model Questions Vol1 Economics examination.
A transport firm charges a fixed base fee of ₦50,000 per trip. For the first 200 km it incurs a variable cost of ₦120 per km, and for each kilometre beyond 200 km the variable cost falls to ₦90 per km. In addition, a fuel surcharge equal to 8 % of the variable cost is added, and a maintenance cost of \(0.5 d^{2}\) naira is incurred, where \(d\) is the total distance travelled (in km). The firm transports wheat at a freight rate of ₦250 per ton per kilometre and each trip carries 20 tons. What is the smallest integer distance (in km) the firm must travel to earn a profit of at least ₦150,000?
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About This Question
This is Neco Model Questions Vol1 2017 Economics Question 31. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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