Post Utme Bsu 2017 Commerce Question 7

Practice objective / multiple choice question 7 from the 2017 Post Utme Bsu Commerce examination.

Post Utme Bsu 2017 Commerce Objective / Multiple Choice

Question 7 POST_UTME_BSU • 2017 • COMMERCE • objective

A company is considering two different production processes for a new product. Process A has a fixed cost of ₦50,000 and a variable cost of ₦20 per unit. Process B has a fixed cost of ₦30,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦60 per unit, which process should the company use?

Correct Answer A. Process A

B. Process B

C. Both processes are equally profitable

D. Neither process is profitable

Correct Answer

Correct Option:

Process A

This is Post Utme Bsu 2017 Commerce Question 7. It is one of the objective questions from the 2017 Post Utme Bsu Commerce examination.

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