Post Utme Coal City University 2023 Commerce Question 10

Practice objective / multiple choice question 10 from the 2023 Post Utme Coal City University Commerce examination.

Post Utme Coal City University 2023 Commerce Objective / Multiple Choice
Question 10 POST_UTME_COAL_CITY_UNIVERSITY • 2023 • COMMERCE • objective

A company is considering two different production strategies to manufacture its product. Strategy A involves producing the product in-house, which will cost ₦5 million per unit. Strategy B involves outsourcing the production of the product to a third-party supplier, which will cost ₦3 million per unit. However, the company is also concerned about the risk of quality control, which could affect the profitability of the product. What is the company's expected profit from the product?

Answer Options

Correct Answer A. ₦2 million
B. ₦1 million
C. ₦0 million
D. -₦1 million
Correct Answer
A
Correct Option:
₦2 million

About This Question

This is Post Utme Coal City University 2023 Commerce Question 10. It is one of the objective questions from the 2023 Post Utme Coal City University Commerce examination.

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