Post Utme Mountain Top University 2024 Commerce Question 22

Practice objective / multiple choice question 22 from the 2024 Post Utme Mountain Top University Commerce examination.

Post Utme Mountain Top University 2024 Commerce Objective / Multiple Choice
Question 22 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2024 • COMMERCE • objective

A company is considering two different production processes for its product. Process A has a fixed cost of ₦10,000 and a variable cost of ₦5 per unit, while Process B has a fixed cost of ₦15,000 and a variable cost of ₦3 per unit. If the selling price of the product is ₦10 per unit, which process should the company choose?

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 Mountain Top University 2024 Commerce Question 22. It is one of the objective questions from the 2024 Post Utme Mountain Top University Commerce examination.

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