Post Utme Rsu 2019 Commerce Question 34

Practice objective / multiple choice question 34 from the 2019 Post Utme Rsu Commerce examination.

Post Utme Rsu 2019 Commerce Objective / Multiple Choice

Question 34 POST_UTME_RSU • 2019 • COMMERCE • objective

A company is considering two different production processes for its new product. Process A involves a fixed cost of ₦50,000 and a variable cost of ₦20 per unit. Process B involves a fixed cost of ₦30,000 and a variable cost of ₦30 per unit. If the company expects to sell 100 units of the product per month at ₦500 per unit, which process would result in lower costs?

A. Process A

Correct Answer B. Process B

C. Both processes would result in the same cost

D. Neither process would result in lower costs

Correct Answer

Correct Option:

Process B

This is Post Utme Rsu 2019 Commerce Question 34. It is one of the objective questions from the 2019 Post Utme Rsu Commerce examination.

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