Post Utme Futa 2021 Commerce Question 12

Practice objective / multiple choice question 12 from the 2021 Post Utme Futa Commerce examination.

Post Utme Futa 2021 Commerce Objective / Multiple Choice
Question 12 POST_UTME_FUTA • 2021 • 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 ₦120 per unit, which process should the company use to maximize its profit?

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 Futa 2021 Commerce Question 12. It is one of the objective questions from the 2021 Post Utme Futa Commerce examination.

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