Neco Model Questions Vol1 2019 Commerce Question 30

Practice objective / multiple choice question 30 from the 2019 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2019 Commerce Objective / Multiple Choice Medium Difficulty
Question 30 NECO_MODEL_QUESTIONS_VOL1 • 2019 • COMMERCE • objective

A transport company operates a truck that can carry a maximum load of 10 tonnes. The fixed cost of operating the truck for a day (including driver's salary, depreciation and insurance) is ₦45,000, regardless of the load carried. The variable cost of fuel and maintenance is ₦2,500 per tonne‑kilometre. On a particular trip the truck carries 8 tonnes over a distance of 150 km. (a) Compute the total cost of the trip. (b) Determine the average cost per tonne‑kilometre for this trip. (c) If the company wants the average cost per tonne‑kilometre not to exceed ₦3,000, what is the minimum load (in tonnes) it must carry for the same distance? Assume the load can be any real number up to the maximum capacity.

Answer Options

A. a) 2,850,000; b) 2,375; c) 0.8
Correct Answer B. a) 3,045,000; b) 2,537.5; c) 0.6
C. a) 3,045,000; b) 2,537.5; c) 0.75
D. a) 3,045,000; b) 2,700; c) 0.5
Correct Answer
B
Correct Option:
a) 3,045,000; b) 2,537.5; c) 0.6

About This Question

This is Neco Model Questions Vol1 2019 Commerce Question 30. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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