Post Utme Greenfield University 2020 Commerce Question 37

Practice objective / multiple choice question 37 from the 2020 Post Utme Greenfield University Commerce examination.

Post Utme Greenfield University 2020 Commerce Objective / Multiple Choice
Question 37 POST_UTME_GREENFIELD_UNIVERSITY • 2020 • COMMERCE • objective

A company is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦100,000 and has a variable cost of ₦50 per unit. Process B requires an initial investment of ₦150,000 and has a variable cost of ₦30 per unit. If the company expects to sell 10,000 units of the product, which process should it choose?

Answer Options

A. Process A
Correct Answer B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Correct Answer
B
Correct Option:
Process B

About This Question

This is Post Utme Greenfield University 2020 Commerce Question 37. It is one of the objective questions from the 2020 Post Utme Greenfield University Commerce examination.

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