Post Utme Al Hikmah University 2020 Commerce Question 11

Practice objective / multiple choice question 11 from the 2020 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2020 Commerce Objective / Multiple Choice
Question 11 POST_UTME_AL-HIKMAH_UNIVERSITY • 2020 • COMMERCE • objective

A company is considering two different production methods for its product. Method A involves a higher initial investment but lower operating costs, while Method B involves a lower initial investment but higher operating costs. If the company expects to produce 10,000 units per year for 5 years, and the selling price per unit is ₦500, which production method should the company choose?

Answer Options

Correct Answer A. Method A
B. Method B
C. Both methods are equally profitable
D. Neither method is profitable
Correct Answer
A
Correct Option:
Method A

About This Question

This is Post Utme Al Hikmah University 2020 Commerce Question 11. It is one of the objective questions from the 2020 Post Utme Al Hikmah University Commerce examination.

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