Post Utme Aaua 2021 Commerce Question 12

Practice objective / multiple choice question 12 from the 2021 Post Utme Aaua Commerce examination.

Post Utme Aaua 2021 Commerce Objective / Multiple Choice

Question 12 POST_UTME_AAUA • 2021 • COMMERCE • objective

A company is considering two different production processes for its product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the company produces 10,000 units, which process will result in lower total cost?

Correct Answer A. Process A

B. Process B

C. Both processes will result in the same total cost.

D. Neither process will result in lower total cost.

Correct Answer

Correct Option:

Process A

This is Post Utme Aaua 2021 Commerce Question 12. It is one of the objective questions from the 2021 Post Utme Aaua Commerce examination.

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