Post Utme Summit University 2020 Commerce Question 10

Practice objective / multiple choice question 10 from the 2020 Post Utme Summit University Commerce examination.

Post Utme Summit University 2020 Commerce Objective / Multiple Choice
Question 10 POST_UTME_SUMMIT_UNIVERSITY • 2020 • COMMERCE • objective

A firm is considering two different production methods for its new product. Method A requires an initial investment of ₦5 million and produces 10,000 units per month, while Method B requires an initial investment of ₦3 million and produces 8,000 units per month. If the firm expects to sell each unit for ₦2,500, what is the minimum number of months it must operate to break even?

Answer Options

A. 4 months
B. 6 months
C. 8 months
Correct Answer D. 10 months
Correct Answer
D
Correct Option:
10 months

About This Question

This is Post Utme Summit University 2020 Commerce Question 10. It is one of the objective questions from the 2020 Post Utme Summit University Commerce examination.

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