Post Utme Joseph Ayo Babalola University 2024 Commerce Question 32

Practice objective / multiple choice question 32 from the 2024 Post Utme Joseph Ayo Babalola University Commerce examination.

Post Utme Joseph Ayo Babalola University 2024 Commerce Objective / Multiple Choice
Question 32 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2024 • COMMERCE • objective

A company is considering two different production processes for its new 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 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 Joseph Ayo Babalola University 2024 Commerce Question 32. It is one of the objective questions from the 2024 Post Utme Joseph Ayo Babalola University Commerce examination.

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