Post Utme Lautech 2018 Commerce Question 32

Practice objective / multiple choice question 32 from the 2018 Post Utme Lautech Commerce examination.

Post Utme Lautech 2018 Commerce Objective / Multiple Choice
Question 32 POST_UTME_LAUTECH • 2018 • COMMERCE • objective

A company is considering two different production processes. Process A involves a fixed cost of ₦50,000 and a variable cost of ₦100 per unit, while Process B involves a fixed cost of ₦30,000 and a variable cost of ₦150 per unit. If the company expects to produce 100 units of product, which process will result in lower total cost?

Answer Options

Correct Answer A. Process A
B. Process B
C. Both processes will result in the same total cost
D. Neither process will result in lower total cost
Correct Answer
A
Correct Option:
Process A

About This Question

This is Post Utme Lautech 2018 Commerce Question 32. It is one of the objective questions from the 2018 Post Utme Lautech Commerce examination.

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