Post Utme Unilorin 2018 Commerce Question 23

Practice objective / multiple choice question 23 from the 2018 Post Utme Unilorin Commerce examination.

Post Utme Unilorin 2018 Commerce Objective / Multiple Choice
Question 23 POST_UTME_UNILORIN • 2018 • COMMERCE • objective

A company is considering two different production processes to manufacture a product. Process A has a fixed cost of ₦200,000 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 company expects to produce 10,000 units, which process should it choose?

Answer Options

A. Process A
Correct Answer B. Process B
C. Both processes are equally good
D. Neither process is suitable
Correct Answer
B
Correct Option:
Process B

About This Question

This is Post Utme Unilorin 2018 Commerce Question 23. It is one of the objective questions from the 2018 Post Utme Unilorin Commerce examination.

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