Post Utme Joseph Ayo Babalola University 2023 Commerce Question 37

Practice objective / multiple choice question 37 from the 2023 Post Utme Joseph Ayo Babalola University Commerce examination.

Post Utme Joseph Ayo Babalola University 2023 Commerce Objective / Multiple Choice
Question 37 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2023 • COMMERCE • objective

A company is considering two different production processes for its new product. Process A has a fixed cost of ₦500,000 and a variable cost of ₦200 per unit. Process B has a fixed cost of ₦300,000 and a variable cost of ₦150 per unit. If the selling price of the product is ₦350 per unit, which process should the company choose to maximize its profit?

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 Joseph Ayo Babalola University 2023 Commerce Question 37. It is one of the objective questions from the 2023 Post Utme Joseph Ayo Babalola University Commerce examination.

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