Post Utme Rsu 2018 Commerce Question 2

Practice objective / multiple choice question 2 from the 2018 Post Utme Rsu Commerce examination.

Post Utme Rsu 2018 Commerce Objective / Multiple Choice

Question 2 POST_UTME_RSU • 2018 • COMMERCE • objective

A company is considering two different production methods for a new product. Method A requires an initial investment of ₦1,000,000 and produces 1,000 units per year, while Method B requires an initial investment of ₦500,000 and produces 500 units per year. If the company expects to sell each unit for ₦200, which method should it choose?

Correct Answer A. Method A

B. Method B

C. Both methods are equally profitable

D. Neither method is profitable

Correct Answer

Correct Option:

Method A

This is Post Utme Rsu 2018 Commerce Question 2. It is one of the objective questions from the 2018 Post Utme Rsu Commerce examination.

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