Waec Model Questions Vol1 2021 Commerce Question 42

Practice objective / multiple choice question 42 from the 2021 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2021 Commerce Objective / Multiple Choice Medium Difficulty
Question 42 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • COMMERCE • objective

A company must transport 500 tonnes of goods from Lagos to Kano, a distance of 900 km. Two transport modes are available: - Road: cost = ₦0.45 per tonne‑km, unlimited capacity. - Rail: cost = ₦0.30 per tonne‑km, but can carry at most 350 tonnes per shipment. If both modes are used in the same shipment, a handling surcharge of ₦12,000 is added once. Determine the allocation of tonnes to road and rail that yields the minimum total transportation cost, and state that minimum cost.

Answer Options

A. Road: 200 tonnes, Rail: 300 tonnes; Minimum cost = 168,000 Naira
B. Road: 150 tonnes, Rail: 350 tonnes; Minimum cost = 170,000 Naira
Correct Answer C. Road: 150 tonnes, Rail: 350 tonnes; Minimum cost = 167,250 Naira
D. Road: 100 tonnes, Rail: 400 tonnes; Minimum cost = 166,500 Naira
Correct Answer
C
Correct Option:
Road: 150 tonnes, Rail: 350 tonnes; Minimum cost = 167,250 Naira

About This Question

This is Waec Model Questions Vol1 2021 Commerce Question 42. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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