Post Utme Aaua 2018 Economics Question 36

Practice objective / multiple choice question 36 from the 2018 Post Utme Aaua Economics examination.

Post Utme Aaua 2018 Economics Objective / Multiple Choice
Question 36 POST_UTME_AAUA • 2018 • ECONOMICS • objective

A firm is considering two alternative production processes for its product. Process A has a fixed \cost of ₦1,500,000 and a variable \cost of ₦500 per unit. Process B has a fixed \cost of ₦1,000,000 and a variable \cost of ₦600 per unit. If the selling price of the product is ₦1,200 per unit, what is the break-even point in units for Process A?

Answer Options

A. 2,000 units
Correct Answer B. 1,500 units
C. 1,000 units
D. 750 units
Correct Answer
B
Correct Option:
1,500 units

About This Question

This is Post Utme Aaua 2018 Economics Question 36. It is one of the objective questions from the 2018 Post Utme Aaua Economics examination.

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