Post Utme Esut 2022 Commerce Question 2

Practice objective / multiple choice question 2 from the 2022 Post Utme Esut Commerce examination.

Post Utme Esut 2022 Commerce Objective / Multiple Choice
Question 2 POST_UTME_ESUT • 2022 • COMMERCE • objective

A company is considering two different production processes for its product. Process A requires an initial investment of ₦1,500,000 and has a variable cost of ₦200 per unit. Process B requires an initial investment of ₦2,000,000 and has a variable cost of ₦150 per unit. If the company produces 10,000 units, which process will result in lower total costs?

Answer Options

A. Process A
Correct Answer B. Process B
C. Both processes will result in the same total costs
D. Neither process will result in lower total costs
Correct Answer
B
Correct Option:
Process B

About This Question

This is Post Utme Esut 2022 Commerce Question 2. It is one of the objective questions from the 2022 Post Utme Esut Commerce examination.

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