Post Utme Summit University 2023 Commerce Question 12

Practice objective / multiple choice question 12 from the 2023 Post Utme Summit University Commerce examination.

Post Utme Summit University 2023 Commerce Objective / Multiple Choice
Question 12 POST_UTME_SUMMIT_UNIVERSITY • 2023 • COMMERCE • objective

A company is considering two different production methods for a new product. Method A requires an initial investment of ₦100,000 and produces 100 units of the product per day. Method B requires an initial investment of ₦200,000 and produces 200 units of the product per day. Which method is more profitable if the company sells each unit of the product for ₦500?

Answer Options

A. Method A is more profitable.
Correct Answer B. Method B is more profitable.
C. Both methods are equally profitable.
D. The profitability of both methods cannot be determined with the given information.
Correct Answer
B
Correct Option:
Method B is more profitable.

About This Question

This is Post Utme Summit University 2023 Commerce Question 12. It is one of the objective questions from the 2023 Post Utme Summit University Commerce examination.

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