Neco Model Questions Vol1 2019 Commerce Question 3
Practice objective / multiple choice question 3 from the 2019 Neco Model Questions Vol1 Commerce examination.
A firm needs to transport 200 tons of goods over a distance of \(d\) kilometres. It can choose either road transport or rail transport. Road transport: fixed cost per truck = ₦2,000; variable cost = ₦0.20 per kilometre per ton; each truck carries 10 tons. Rail transport: fixed cost per train = ₦5,000; variable cost = ₦0.30 per kilometre per ton; each train carries 40 tons. Assuming the firm uses the minimum whole number of trucks or trains required to move the 200 tons, find the distance \(d\) at which the total cost of road transport equals the total cost of rail transport.
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About This Question
This is Neco Model Questions Vol1 2019 Commerce Question 3. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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