Post Utme Uniosun 2024 Commerce Question 2

Practice objective / multiple choice question 2 from the 2024 Post Utme Uniosun Commerce examination.

Post Utme Uniosun 2024 Commerce Objective / Multiple Choice
Question 2 POST_UTME_UNIOSUN • 2024 • COMMERCE • objective

A company is considering two different production processes for manufacturing a product. Process A requires an initial investment of ₦1,500,000 and has a variable cost of ₦500 per unit. Process B requires an initial investment of ₦2,000,000 and has a variable cost of ₦300 per unit. If the company expects to sell 10,000 units, which process should it choose?

Answer Options

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

About This Question

This is Post Utme Uniosun 2024 Commerce Question 2. It is one of the objective questions from the 2024 Post Utme Uniosun Commerce examination.

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