Neco Model Questions Vol1 2017 Geography Question 5
Practice objective / multiple choice question 5 from the 2017 Neco Model Questions Vol1 Geography examination.
A cement factory produces 500 tonnes per month. Fixed monthly cost = ₦2 000 000. Variable production cost = ₦150 000 per tonne. The market price is ₦250 000 per tonne. Transport cost is ₦5 per tonne per kilometre.\n\nTwo potential markets are considered:\n- Market A: 80 km away, no price discount.\n- Market B: 120 km away, offers a 5 % discount on the market price if sales exceed 400 tonnes.\n\nAssuming the entire monthly output is sold to a single market, calculate the monthly profit for each market and indicate which market is more profitable. Provide the profit figures (₦) and the preferred market.
Answer Options
About This Question
This is Neco Model Questions Vol1 2017 Geography Question 5. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Geography examination.
Difficulty level: Hard .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.