Post Utme Babcock University 2025 Commerce Question 7

Practice objective / multiple choice question 7 from the 2025 Post Utme Babcock University Commerce examination.

Post Utme Babcock University 2025 Commerce Objective / Multiple Choice
Question 7 POST_UTME_BABCOCK_UNIVERSITY • 2025 • COMMERCE • objective

A company is considering two different production processes for its product. 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 company wants to produce 1,000 units of the product, which process is more profitable?

Answer Options

Correct Answer A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Correct Answer
A
Correct Option:
Process A

About This Question

This is Post Utme Babcock University 2025 Commerce Question 7. It is one of the objective questions from the 2025 Post Utme Babcock University Commerce examination.

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