Waec Model Questions Vol1 2017 Geography Question 47

A manufacturing firm is planning to locate a new plant. The annual output is expected to be 10,000 units. The fixed cost of establishing the plant is ₦5,000,000, which will be depreciated over 10 years. Transport of raw material costs ₦2 per kilometre per unit and transport of the finished product costs ₦3 per kilometre per unit. Three possible sites are under consideration:\n\nSite A: 30 km from the raw‑material source, 80 km from the market, tax rate 10 %.\nSite B: 45 km from the raw‑material source, 60 km from the market, tax rate 12 %.\nSite C: 20 km from the raw‑material source, 100 km from the market, tax rate 9 %.\n\nWhich site gives the lowest total cost per unit? State the site and the cost per unit (rounded to the nearest naira).