Post Utme Skyline University 2019 Commerce Question 33

Practice objective / multiple choice question 33 from the 2019 Post Utme Skyline University Commerce examination.

Post Utme Skyline University 2019 Commerce Objective / Multiple Choice
Question 33 POST_UTME_SKYLINE_UNIVERSITY • 2019 • COMMERCE • objective

A firm is considering the expansion of its existing product line. The company has identified two potential new products, A and B, which have different production costs and selling prices. Product A has a production cost of ₦100 and a selling price of ₦200, while Product B has a production cost of ₦150 and a selling price of ₦300. Which of the following statements is true about the two products?

Answer Options

A. Product A has a higher profit margin than Product B
Correct Answer B. Product B has a higher profit margin than Product A
C. Product A and Product B have the same profit margin
D. The profit margins of Product A and Product B cannot be compared
Correct Answer
B
Correct Option:
Product B has a higher profit margin than Product A

About This Question

This is Post Utme Skyline University 2019 Commerce Question 33. It is one of the objective questions from the 2019 Post Utme Skyline University Commerce examination.

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