Post Utme Achievers University 2019 Commerce Question 25

Practice objective / multiple choice question 25 from the 2019 Post Utme Achievers University Commerce examination.

Post Utme Achievers University 2019 Commerce Objective / Multiple Choice
Question 25 POST_UTME_ACHIEVERS_UNIVERSITY • 2019 • COMMERCE • objective

A firm is considering two production processes. Process A requires an initial investment of ₦100,000 and generates a profit of ₦20,000 per unit produced. Process B requires an initial investment of ₦150,000 and generates a profit of ₦30,000 per unit produced. If the firm produces 1,000 units per year, which process is more profitable?

Answer Options

Correct Answer A. Process A
B. Process B
C. Both processes are equal
D. Cannot be determined
Correct Answer
A
Correct Option:
Process A

About This Question

This is Post Utme Achievers University 2019 Commerce Question 25. It is one of the objective questions from the 2019 Post Utme Achievers University Commerce examination.

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