Post Utme Delsu 2020 Commerce Question 31

Practice objective / multiple choice question 31 from the 2020 Post Utme Delsu Commerce examination.

Post Utme Delsu 2020 Commerce Objective / Multiple Choice
Question 31 POST_UTME_DELSU • 2020 • COMMERCE • objective

A company is considering two different production methods for its new product. Method A involves an initial investment of ₦1,500,000 and a variable cost of ₦500 per unit. Method B involves an initial investment of ₦2,000,000 and a variable cost of ₦300 per unit. If the selling price of the product is ₦1,200 per unit, what is the break-even point for each method?

Answer Options

A. 1,000 units
Correct Answer B. 1,500 units
C. 2,000 units
D. 2,500 units
Correct Answer
B
Correct Option:
1,500 units

About This Question

This is Post Utme Delsu 2020 Commerce Question 31. It is one of the objective questions from the 2020 Post Utme Delsu Commerce examination.

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