Post Utme Caleb University 2018 Commerce Question 17

Practice objective / multiple choice question 17 from the 2018 Post Utme Caleb University Commerce examination.

Post Utme Caleb University 2018 Commerce Objective / Multiple Choice
Question 17 POST_UTME_CALEB_UNIVERSITY • 2018 • COMMERCE • objective

A company is considering two different production processes for a new product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit, while Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, which process should the company use?

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 Caleb University 2018 Commerce Question 17. It is one of the objective questions from the 2018 Post Utme Caleb University Commerce examination.

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