Neco Model Questions Vol1 2020 Commerce Question 9
Practice objective / multiple choice question 9 from the 2020 Neco Model Questions Vol1 Commerce examination.
A merchant can transport goods over a distance of 150 km using either a truck or a railway. The truck incurs a fixed cost of ₦5,000 per trip plus a variable cost of ₦120 per kilometre. The railway charges a fixed cost of ₦8,000 per shipment and a variable cost of ₦80 per kilometre, but offers a \(5\%\) discount on the variable cost when the distance exceeds 100 km. Determine which mode of transport is cheaper and state the difference in cost, in naira.
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About This Question
This is Neco Model Questions Vol1 2020 Commerce Question 9. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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