Post Utme Uniosun 2024 Commerce Question 5

Practice objective / multiple choice question 5 from the 2024 Post Utme Uniosun Commerce examination.

Post Utme Uniosun 2024 Commerce Objective / Multiple Choice
Question 5 POST_UTME_UNIOSUN • 2024 • COMMERCE • objective

A firm is considering two different production processes for manufacturing a product. Process A requires an initial investment of ₦1,000,000 and has a variable cost of ₦200 per unit. Process B requires an initial investment of ₦1,500,000 and has a variable cost of ₦150 per unit. If the firm expects to sell 8,000 units, which process should it choose?

Answer Options

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

About This Question

This is Post Utme Uniosun 2024 Commerce Question 5. It is one of the objective questions from the 2024 Post Utme Uniosun Commerce examination.

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