Neco Model Questions Vol1 2025 Commerce Question 43
Practice objective / multiple choice question 43 from the 2025 Neco Model Questions Vol1 Commerce examination.
A warehouse faces an annual demand of 12,000 units for a product. The ordering cost is \(\text{₦}5,000\) per order, but if an order exceeds 1,000 units the ordering cost drops to \(\text{₦}4,000\). Holding cost is 20 % of the unit cost per year; the unit cost is \(\text{₦}200\). The warehouse can store at most 1,500 units at any time. Determine the order quantity that minimises the total annual cost while respecting the storage limit, and state the minimum total annual cost (in naira).
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About This Question
This is Neco Model Questions Vol1 2025 Commerce Question 43. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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