Post Utme Christopher University 2021 Commerce Question 28

Practice objective / multiple choice question 28 from the 2021 Post Utme Christopher University Commerce examination.

Post Utme Christopher University 2021 Commerce Objective / Multiple Choice
Question 28 POST_UTME_CHRISTOPHER_UNIVERSITY • 2021 • COMMERCE • objective

A firm is considering two different production processes for a product. Process A has a fixed cost of ₦500,000 and a variable cost of ₦100 per unit. Process B has a fixed cost of ₦200,000 and a variable cost of ₦150 per unit. If the firm produces 10,000 units of the product, what is the total cost of production for each process?

Answer Options

Correct Answer A. Process A: ₦2,500,000; Process B: ₦2,000,000
B. Process A: ₦2,000,000; Process B: ₦2,500,000
C. Process A: ₦1,500,000; Process B: ₦1,000,000
D. Process A: ₦1,000,000; Process B: ₦1,500,000
Correct Answer
A
Correct Option:
Process A: ₦2,500,000; Process B: ₦2,000,000

About This Question

This is Post Utme Christopher University 2021 Commerce Question 28. It is one of the objective questions from the 2021 Post Utme Christopher University Commerce examination.

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