Post Utme Skyline University 2020 Commerce Question 16

Practice objective / multiple choice question 16 from the 2020 Post Utme Skyline University Commerce examination.

Post Utme Skyline University 2020 Commerce Objective / Multiple Choice
Question 16 POST_UTME_SKYLINE_UNIVERSITY • 2020 • COMMERCE • objective

A company is considering two different production methods for its product. Method A requires an initial investment of ₦1,500,000 and produces 10,000 units per month. Method B requires an initial investment of ₦2,000,000 and produces 15,000 units per month. If the selling price of each unit is ₦500, and the variable cost per unit is ₦200, which production method should the company choose?

Answer Options

A. Method A
Correct Answer B. Method B
C. Both methods are equally profitable
D. Neither method is profitable
Correct Answer
B
Correct Option:
Method B

About This Question

This is Post Utme Skyline University 2020 Commerce Question 16. It is one of the objective questions from the 2020 Post Utme Skyline University Commerce examination.

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