Post Utme Lead City University 2022 Commerce Question 27

Practice objective / multiple choice question 27 from the 2022 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2022 Commerce Objective / Multiple Choice
Question 27 POST_UTME_LEAD_CITY_UNIVERSITY • 2022 • COMMERCE • objective

A company is considering two different production processes to manufacture a 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 Lead City University 2022 Commerce Question 27. It is one of the objective questions from the 2022 Post Utme Lead City University Commerce examination.

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