Post Utme Summit University 2020 Commerce Question 8

Practice objective / multiple choice question 8 from the 2020 Post Utme Summit University Commerce examination.

Post Utme Summit University 2020 Commerce Objective / Multiple Choice
Question 8 POST_UTME_SUMMIT_UNIVERSITY • 2020 • COMMERCE • objective

A company is considering two different transportation methods for its products. Method A involves a fixed cost of ₦1 million and a variable cost of ₦500 per unit, while Method B involves a fixed cost of ₦500,000 and a variable cost of ₦750 per unit. If the company expects to sell 10,000 units per month at a price of ₦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 8. It is one of the objective questions from the 2020 Post Utme Summit University Commerce examination.

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