Post Utme Covenant University 2022 Commerce Question 31

Practice objective / multiple choice question 31 from the 2022 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2022 Commerce Objective / Multiple Choice
Question 31 POST_UTME_COVENANT_UNIVERSITY • 2022 • COMMERCE • objective

A company is considering two different production processes for its new product. Process A requires an initial investment of ₦10 million and generates revenue of ₦5 million per unit sold. Process B requires an initial investment of ₦15 million and generates revenue of ₦7 million per unit sold. If the company expects to sell 10,000 units of the product, which process should it choose?

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 Covenant University 2022 Commerce Question 31. It is one of the objective questions from the 2022 Post Utme Covenant University Commerce examination.

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