Post Utme Covenant University 2024 Commerce Question 32

Practice objective / multiple choice question 32 from the 2024 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2024 Commerce Objective / Multiple Choice
Question 32 POST_UTME_COVENANT_UNIVERSITY • 2024 • COMMERCE • objective

A company is considering two different production processes to manufacture a 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 ₦80 per unit, which process should the company 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 2024 Commerce Question 32. It is one of the objective questions from the 2024 Post Utme Covenant University Commerce examination.

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