A logistics company can transport a consignment either by road or by rail.

- By road the cost per trip is a fixed ₦2\,000 plus ₦0.5 per kilometre travelled.
- By rail the fixed cost per trip is ₦5\,000, the variable cost is ₦0.3 per kilometre, and the loading‑unloading procedure adds a delay of 1\,hour. The company values the delay at ₦1\,500 per hour of lost revenue.

(a) Write the total cost expressions $C_{road}(d)$ and $C_{rail}(d)$ in terms of the distance $d$ (km).
(b) Find the distance at which the two modes cost the same.
(c) For a shipment of 350\,km, which mode is cheaper and by how much?

Question

A logistics company can transport a consignment either by road or by rail.

- By road the cost per trip is a fixed ₦2\,000 plus ₦0.5 per kilometre travelled.
- By rail the fixed cost per trip is ₦5\,000, the variable cost is ₦0.3 per kilometre, and the loading‑unloading procedure adds a delay of 1\,hour. The company values the delay at ₦1\,500 per hour of lost revenue.

(a) Write the total cost expressions $C_{road}(d)$ and $C_{rail}(d)$ in terms of the distance $d$ (km).
(b) Find the distance at which the two modes cost the same.
(c) For a shipment of 350\,km, which mode is cheaper and by how much?

Accepted Answer

Equal‑cost distance = 22 500 km; for 350 km road is cheaper by ₦4 430.

Neco Model Questions Vol1 2023 Geography Question 41

Answer Options

About This Question

Master the Exam!