Post Utme Caleb University 2020 Commerce Question 22

Practice objective / multiple choice question 22 from the 2020 Post Utme Caleb University Commerce examination.

Post Utme Caleb University 2020 Commerce Objective / Multiple Choice
Question 22 POST_UTME_CALEB_UNIVERSITY • 2020 • COMMERCE • objective

A firm is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦1.5 million and has a variable cost of ₦200 per unit. Process B requires an initial investment of ₦2 million and has a variable cost of ₦150 per unit. If the firm produces 10,000 units, what is the total cost of production for each process?

Answer Options

Correct Answer A. Process A: ₦2.5 million, Process B: ₦2.8 million
B. Process A: ₦2.8 million, Process B: ₦2.5 million
C. Process A: ₦3.2 million, Process B: ₦2.2 million
D. Process A: ₦2.2 million, Process B: ₦3.2 million
Correct Answer
A
Correct Option:
Process A: ₦2.5 million, Process B: ₦2.8 million

About This Question

This is Post Utme Caleb University 2020 Commerce Question 22. It is one of the objective questions from the 2020 Post Utme Caleb University Commerce examination.

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