Post Utme Redeemers University 2022 Commerce Question 27

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

Post Utme Redeemers University 2022 Commerce Objective / Multiple Choice
Question 27 POST_UTME_REDEEMERS_UNIVERSITY • 2022 • COMMERCE • objective

A company is considering two different production processes for a new product. Process A requires an initial investment of ₦10 million and has a variable cost of ₦5 per unit. Process B requires an initial investment of ₦15 million and has a variable cost of ₦3 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 Redeemers University 2022 Commerce Question 27. It is one of the objective questions from the 2022 Post Utme Redeemers University Commerce examination.

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