Post Utme Veritas University 2025 Commerce Question 3

Practice objective / multiple choice question 3 from the 2025 Post Utme Veritas University Commerce examination.

Post Utme Veritas University 2025 Commerce Objective / Multiple Choice
Question 3 POST_UTME_VERITAS_UNIVERSITY • 2025 • COMMERCE • objective

A firm is considering two different production processes to produce a product. Process A requires an initial investment of ₦100,000 and has a fixed cost of ₦20,000 per unit produced. Process B requires an initial investment of ₦150,000 and has a fixed cost of ₦15,000 per unit produced. If the firm produces 1,000 units of the product, what is the total cost of production for each process?

Answer Options

Correct Answer A. Process A: ₦1,500,000; Process B: ₦1,200,000
B. Process A: ₦1,200,000; Process B: ₦1,500,000
C. Process A: ₦1,000,000; Process B: ₦1,200,000
D. Process A: ₦1,200,000; Process B: ₦1,000,000
Correct Answer
A
Correct Option:
Process A: ₦1,500,000; Process B: ₦1,200,000

About This Question

This is Post Utme Veritas University 2025 Commerce Question 3. It is one of the objective questions from the 2025 Post Utme Veritas University Commerce examination.

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