Post Utme Skyline University 2020 Commerce Question 20

Practice objective / multiple choice question 20 from the 2020 Post Utme Skyline University Commerce examination.

Post Utme Skyline University 2020 Commerce Objective / Multiple Choice
Question 20 POST_UTME_SKYLINE_UNIVERSITY • 2020 • COMMERCE • objective

A firm is considering two different production methods for its product. Method A involves a one-time investment of ₦1,000,000 and produces 5,000 units per month. Method B involves a monthly investment of ₦50,000 and produces 10,000 units per month. If the firm expects to sell 20,000 units in the next quarter, which production method should it 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 20. It is one of the objective questions from the 2020 Post Utme Skyline University Commerce examination.

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