Neco Model Questions Vol1 2025 Commerce Question 48
Practice objective / multiple choice question 48 from the 2025 Neco Model Questions Vol1 Commerce examination.
A logistics company transports goods by truck. Fixed cost per trip is ₦45,000 and variable cost is ₦120 per ton‑km. The truck can carry a maximum of 20 tons. The company charges a freight rate of ₦250 per ton‑km. For a trip of 350 km, the company may either (i) run a direct trip, or (ii) use a depot, splitting the journey into two legs of 200 km and 180 km. Using the depot reduces the variable cost to ₦100 per ton‑km but adds a handling charge of ₦10,000 per leg. If the load is 15 tons, which option yields the higher profit and what is that profit (in naira)?
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About This Question
This is Neco Model Questions Vol1 2025 Commerce Question 48. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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