Post Utme Aaua 2017 Commerce Question 36
Practice objective / multiple choice question 36 from the 2017 Post Utme Aaua Commerce examination.
A firm is considering two production methods for its product: Method A and Method B. Method A requires an initial investment of ₦1,500,000 and has a fixed cost of ₦200,000 per unit produced. Method B requires an initial investment of ₦1,000,000 and has a fixed cost of ₦150,000 per unit produced. If the selling price of the product is ₦500 per unit, and the firm produces 10,000 units per year, which production method should the firm adopt?
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About This Question
This is Post Utme Aaua 2017 Commerce Question 36. It is one of the objective questions from the 2017 Post Utme Aaua Commerce examination.
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