Post Utme Aaua 2022 Commerce Question 20

Practice objective / multiple choice question 20 from the 2022 Post Utme Aaua Commerce examination.

Post Utme Aaua 2022 Commerce Objective / Multiple Choice
Question 20 POST_UTME_AAUA • 2022 • COMMERCE • objective

A company is considering two different production processes: Process A and Process B. Process A involves a fixed cost of ₦500,000 and a variable cost of ₦50 per unit produced. Process B involves a fixed cost of ₦750,000 and a variable cost of ₦30 per unit produced. Using the break-even analysis, find the number of units that must be produced to break even with each process.

Answer Options

A. 12,500 units
Correct Answer B. 18,750 units
C. 25,000 units
D. 31,250 units
Correct Answer
B
Correct Option:
18,750 units

About This Question

This is Post Utme Aaua 2022 Commerce Question 20. It is one of the objective questions from the 2022 Post Utme Aaua Commerce examination.

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