Post Utme Esut 2022 Commerce Question 4

Practice objective / multiple choice question 4 from the 2022 Post Utme Esut Commerce examination.

Post Utme Esut 2022 Commerce Objective / Multiple Choice
Question 4 POST_UTME_ESUT • 2022 • COMMERCE • objective

A firm is considering the following two production processes for its product. Process A requires an initial investment of ₦1,000,000 and has a variable cost of ₦100 per unit. Process B requires an initial investment of ₦1,500,000 and has a variable cost of ₦80 per unit. If the firm produces 5,000 units, what is the total cost of production for each process?

Answer Options

Correct Answer A. Process A: ₦1,500,000; Process B: ₦1,200,000
B. Process A: ₦1,200,000; Process B: ₦1,500,000
C. Process A: ₦1,000,000; Process B: ₦1,000,000
D. Process A: ₦1,500,000; Process B: ₦1,500,000
Correct Answer
A
Correct Option:
Process A: ₦1,500,000; Process B: ₦1,200,000

About This Question

This is Post Utme Esut 2022 Commerce Question 4. It is one of the objective questions from the 2022 Post Utme Esut Commerce examination.

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