Post Utme Coal City University 2024 Commerce Question 2

Practice objective / multiple choice question 2 from the 2024 Post Utme Coal City University Commerce examination.

Post Utme Coal City University 2024 Commerce Objective / Multiple Choice
Question 2 POST_UTME_COAL_CITY_UNIVERSITY • 2024 • COMMERCE • objective

A company is considering two different production processes for its product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. 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 ₦75 per unit, which process should the company use to maximize its profit?

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 Coal City University 2024 Commerce Question 2. It is one of the objective questions from the 2024 Post Utme Coal City University Commerce examination.

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