Post Utme Lead City University 2017 Commerce Question 45

Practice objective / multiple choice question 45 from the 2017 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2017 Commerce Objective / Multiple Choice
Question 45 POST_UTME_LEAD_CITY_UNIVERSITY • 2017 • COMMERCE • objective

A company is considering two different production processes for its 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 ₦80 per unit, which process should the company use?

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 Lead City University 2017 Commerce Question 45. It is one of the objective questions from the 2017 Post Utme Lead City University Commerce examination.

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