Post Utme Redeemers University 2022 Commerce Question 40

Practice objective / multiple choice question 40 from the 2022 Post Utme Redeemers University Commerce examination.

Post Utme Redeemers University 2022 Commerce Objective / Multiple Choice
Question 40 POST_UTME_REDEEMERS_UNIVERSITY • 2022 • COMMERCE • objective

A firm is considering two different production processes for its product. Process A requires an initial investment of ₦1.5 million and has a production cost of ₦200,000 per unit. Process B requires an initial investment of ₦2.0 million and has a production cost of ₦150,000 per unit. If the firm produces 10,000 units, what is the total cost of production for each process?

Answer Options

Correct Answer A. Process A: ₦1.5 million, Process B: ₦1.8 million
B. Process A: ₦1.8 million, Process B: ₦1.5 million
C. Process A: ₦1.2 million, Process B: ₦1.6 million
D. Process A: ₦1.6 million, Process B: ₦1.2 million
Correct Answer
A
Correct Option:
Process A: ₦1.5 million, Process B: ₦1.8 million

About This Question

This is Post Utme Redeemers University 2022 Commerce Question 40. It is one of the objective questions from the 2022 Post Utme Redeemers University Commerce examination.

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