Post Utme Uniport 2019 Commerce Question 7

Practice objective / multiple choice question 7 from the 2019 Post Utme Uniport Commerce examination.

Post Utme Uniport 2019 Commerce Objective / Multiple Choice
Question 7 POST_UTME_UNIPORT • 2019 • COMMERCE • objective

A firm is considering two different production processes for a new product. Process A requires an initial investment of ₦1,000,000 and produces 10,000 units per month, while Process B requires an initial investment of ₦500,000 and produces 5,000 units per month. If the firm expects to sell the product at ₦100 per unit, what is the break-even point for each process?

Answer Options

A. Process A: 5,000 units, Process B: 10,000 units
Correct Answer B. Process A: 10,000 units, Process B: 5,000 units
C. Process A: 20,000 units, Process B: 15,000 units
D. Process A: 15,000 units, Process B: 20,000 units
Correct Answer
B
Correct Option:
Process A: 10,000 units, Process B: 5,000 units

About This Question

This is Post Utme Uniport 2019 Commerce Question 7. It is one of the objective questions from the 2019 Post Utme Uniport Commerce examination.

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