Post Utme Uniport 2017 Commerce Question 37

Practice objective / multiple choice question 37 from the 2017 Post Utme Uniport Commerce examination.

Post Utme Uniport 2017 Commerce Objective / Multiple Choice
Question 37 POST_UTME_UNIPORT • 2017 • COMMERCE • objective

A company is considering two different production methods for its product. Method A involves a high initial investment but low ongoing costs, while Method B involves low initial investment but high ongoing costs. If the company expects to produce 10,000 units per year for 5 years, and the market price is ₦200 per unit, which production method should the company choose?

Answer Options

Correct Answer A. Method A
B. Method B
C. Both methods are equally profitable
D. Neither method is profitable
Correct Answer
A
Correct Option:
Method A

About This Question

This is Post Utme Uniport 2017 Commerce Question 37. It is one of the objective questions from the 2017 Post Utme Uniport Commerce examination.

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