Post Utme Al Hikmah University 2019 Commerce Question 17

Practice objective / multiple choice question 17 from the 2019 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2019 Commerce Objective / Multiple Choice
Question 17 POST_UTME_AL-HIKMAH_UNIVERSITY • 2019 • COMMERCE • objective

A firm is considering two different production processes for producing a certain commodity. Process A requires an initial investment of ₦100,000 and has a variable cost of ₦50 per unit produced. Process B requires an initial investment of ₦150,000 and has a variable cost of ₦30 per unit produced. If the firm produces 10,000 units of the commodity, what is the total cost of production for each process?

Answer Options

Correct Answer A. Process A: ₦1,500,000, Process B: ₦1,200,000
B. Process A: ₦1,200,000, Process B: ₦1,500,000
C. Process A: ₦1,000,000, Process B: ₦1,000,000
D. Process A: ₦1,500,000, Process B: ₦1,500,000
Correct Answer
A
Correct Option:
Process A: ₦1,500,000, Process B: ₦1,200,000

About This Question

This is Post Utme Al Hikmah University 2019 Commerce Question 17. It is one of the objective questions from the 2019 Post Utme Al Hikmah University Commerce examination.

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