Waec Model Questions Vol1 2025 Commerce Question 44

Practice objective / multiple choice question 44 from the 2025 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2025 Commerce Objective / Multiple Choice Hard Difficulty
Question 44 WAEC_MODEL_QUESTIONS_VOL1 • 2025 • COMMERCE • objective

A warehouse stores two products, A and B. Annual demand is 12,000 units for A and 8,000 units for B. Ordering costs are ₦5,000 per order for A and ₦4,000 per order for B. Holding cost equals 20% of the unit cost per year. Unit costs are ₦200 for A and ₦300 for B. Each unit of A occupies 0.2 m³ and each unit of B occupies 0.3 m³. The warehouse has a total storage capacity of 300 m³. Using the Economic Order Quantity (EOQ) model for each product, determine the order quantities that satisfy the capacity constraint and compute the total annual ordering plus holding cost under this feasible plan.

Answer Options

Correct Answer A. Order Q_A ≈ 1,585 units, Q_B ≈ 944 units; total annual cost ≈ ₦131,780
B. Order Q_A ≈ 1,600 units, Q_B ≈ 900 units; total annual cost ≈ ₦135,000
C. Order Q_A ≈ 1,585 units, Q_B ≈ 944 units; total annual cost ≈ ₦140,000
D. Order Q_A ≈ 1,400 units, Q_B ≈ 1,000 units; total annual cost ≈ ₦128,500
Correct Answer
A
Correct Option:
Order Q_A ≈ 1,585 units, Q_B ≈ 944 units; total annual cost ≈ ₦131,780

About This Question

This is Waec Model Questions Vol1 2025 Commerce Question 44. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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