Post Utme Delsu 2025 Commerce Question 34

Practice objective / multiple choice question 34 from the 2025 Post Utme Delsu Commerce examination.

Post Utme Delsu 2025 Commerce Objective / Multiple Choice
Question 34 POST_UTME_DELSU • 2025 • COMMERCE • objective

A company is considering two different production methods for its new product. Method A requires an initial investment of ₦5 million and produces 10,000 units per month, while Method B requires an initial investment of ₦3 million and produces 8,000 units per month. If the company expects to sell each unit for ₦2,500, what is the minimum number of months it must operate to break even, assuming both methods have the same monthly fixed costs?

Answer Options

A. 6 months
B. 8 months
Correct Answer C. 10 months
D. 12 months
Correct Answer
C
Correct Option:
10 months

About This Question

This is Post Utme Delsu 2025 Commerce Question 34. It is one of the objective questions from the 2025 Post Utme Delsu Commerce examination.

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