Post Utme Afe Babalola University 2017 Commerce Question 10

Practice objective / multiple choice question 10 from the 2017 Post Utme Afe Babalola University Commerce examination.

Post Utme Afe Babalola University 2017 Commerce Objective / Multiple Choice
Question 10 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2017 • COMMERCE • objective

A firm is considering two different production processes for a new product. Process A requires an initial investment of ₦1,000,000 and produces 10,000 units per year, while Process B requires an initial investment of ₦500,000 and produces 5,000 units per year. What is the break-even point for each process?

Answer Options

A. Process A has a break-even point of 5,000 units, while Process B has a break-even point of 10,000 units.
B. Process A has a break-even point of 10,000 units, while Process B has a break-even point of 5,000 units.
C. Process A has a break-even point of ₦500,000, while Process B has a break-even point of ₦1,000,000.
Correct Answer D. Process A has a break-even point of ₦1,000,000, while Process B has a break-even point of ₦500,000.
Correct Answer
D
Correct Option:
Process A has a break-even point of ₦1,000,000, while Process B has a break-even point of ₦500,000.

About This Question

This is Post Utme Afe Babalola University 2017 Commerce Question 10. It is one of the objective questions from the 2017 Post Utme Afe Babalola University Commerce examination.

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