Post Utme Covenant University 2021 Commerce Question 36

Practice objective / multiple choice question 36 from the 2021 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2021 Commerce Objective / Multiple Choice
Question 36 POST_UTME_COVENANT_UNIVERSITY • 2021 • COMMERCE • objective

A company specializing in the production of luxury cars has decided to expand its operations to include the production of electric vehicles. The company has identified three potential locations for its new factory: Location A, Location B, and Location C. Each location has a different cost structure, and the company wants to determine which location will result in the lowest total cost. The cost structure for each location is as follows:

Answer Options

A. Location A: 10 million fixed cost, 5 million variable cost per unit
Correct Answer B. Location B: 15 million fixed cost, 3 million variable cost per unit
C. Location C: 20 million fixed cost, 2 million variable cost per unit
Correct Answer
B
Correct Option:
Location B: 15 million fixed cost, 3 million variable cost per unit

About This Question

This is Post Utme Covenant University 2021 Commerce Question 36. It is one of the objective questions from the 2021 Post Utme Covenant University Commerce examination.

View More Post Utme Covenant University 2021 Commerce Questions More Post Utme Covenant University Practice Questions Back to Questions

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