Neco Model Questions Vol1 2018 Geography Question 31

An entrepreneur is evaluating three possible sites (A, B, C) for a new textile factory. The factory requires \(500\) tons of cotton per month. The distance from the cotton source to each site is: A - \(120\) km, B - \(80\) km, C - \(150\) km. Transport cost is ₦0.25 per km per ton. Daily output required is \(200\) units. Labor data: Site A - daily wage ₦2,500, productivity \(20\) units per worker; Site B - daily wage ₦2,200, productivity \(18\) units per worker; Site C - daily wage ₦2,800, productivity \(22\) units per worker. Energy cost is ₦15 per unit (same for all sites). Fixed monthly overheads are: A - ₦300,000; B - ₦250,000; C - ₦350,000. An environmental tax of \(5\%\) of the total variable cost (transport + labor + energy) is imposed on any site located within \(100\) km of a river; only Site B satisfies this condition. Assuming \(30\) working days per month, which site gives the lowest total monthly cost? Show all calculations.