Post Utme Summit University 2019 Commerce Question 37

Practice objective / multiple choice question 37 from the 2019 Post Utme Summit University Commerce examination.

Post Utme Summit University 2019 Commerce Objective / Multiple Choice
Question 37 POST_UTME_SUMMIT_UNIVERSITY • 2019 • COMMERCE • objective

A company is considering two different production processes for a new product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, what is the break-even point for each process?

Answer Options

Correct Answer A. Process A: 2,000 units; Process B: 5,000 units
B. Process A: 3,000 units; Process B: 4,000 units
C. Process A: 4,000 units; Process B: 3,000 units
D. Process A: 5,000 units; Process B: 2,000 units
Correct Answer
A
Correct Option:
Process A: 2,000 units; Process B: 5,000 units

About This Question

This is Post Utme Summit University 2019 Commerce Question 37. It is one of the objective questions from the 2019 Post Utme Summit University Commerce examination.

View More Post Utme Summit University 2019 Commerce Questions More Post Utme Summit University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support