Post Utme Uniport 2018 Commerce Question 22

Practice objective / multiple choice question 22 from the 2018 Post Utme Uniport Commerce examination.

Post Utme Uniport 2018 Commerce Objective / Multiple Choice
Question 22 POST_UTME_UNIPORT • 2018 • COMMERCE • objective

A company is considering two different production processes for a new product. Process A requires an initial investment of ₦100,000 and produces 100 units per day, while Process B requires an initial investment of ₦200,000 and produces 200 units per day. If the company wants to maximize its profit, which process should it choose?

Answer Options

A. Process A, as it has a lower initial investment
B. Process B, as it produces more units per day
C. Process A, as it has a higher profit margin
Correct Answer D. Process B, as it has a lower cost per unit
Correct Answer
D
Correct Option:
Process B, as it has a lower cost per unit

About This Question

This is Post Utme Uniport 2018 Commerce Question 22. It is one of the objective questions from the 2018 Post Utme Uniport Commerce examination.

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