Post Utme Christopher University 2021 Commerce Question 11

Practice objective / multiple choice question 11 from the 2021 Post Utme Christopher University Commerce examination.

Post Utme Christopher University 2021 Commerce Objective / Multiple Choice
Question 11 POST_UTME_CHRISTOPHER_UNIVERSITY • 2021 • COMMERCE • objective

A company is considering two different production methods for its new product. Method A involves a higher initial investment but lower production costs, while Method B involves a lower initial investment but higher production costs. If the company expects to produce 10,000 units per year for 5 years, and the market price of the product is ₦200 per unit, 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 Christopher University 2021 Commerce Question 11. It is one of the objective questions from the 2021 Post Utme Christopher University Commerce examination.

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support