Neco Model Questions Vol1 2025 Commerce Question 29

Practice objective / multiple choice question 29 from the 2025 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2025 Commerce Objective / Multiple Choice Medium Difficulty
Question 29 NECO_MODEL_QUESTIONS_VOL1 • 2025 • COMMERCE • objective

A trader must transport goods from Lagos to Kano. Two possible routes are available: Route A - Lagos → Ilorin → Kaduna → Kano with distances 300 km, 400 km and 200 km respectively; the truck rate is \(₦120\) per km for the first 800 km and \(₦100\) per km thereafter, and a fixed loading/unloading cost of \(₦5,000\) is incurred at each intermediate city and at the final destination. Route B - Lagos → Abuja → Kano with distances 750 km and 500 km; the truck rate is \(₦130\) per km for the first 600 km and \(₦110\) per km thereafter, and a fixed cost of \(₦6,000\) is incurred at each intermediate city and at the final destination. Which route results in the lower total transportation cost and what is that cost?

Answer Options

Correct Answer A. Route A with total cost ₦121,000
B. Route B with total cost ₦124,500
C. Route A with total cost ₦118,000
D. Route B with total cost ₦121,000
Correct Answer
A
Correct Option:
Route A with total cost ₦121,000

About This Question

This is Neco Model Questions Vol1 2025 Commerce Question 29. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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