Post Utme Wellspring University 2018 Commerce Question 27

Practice objective / multiple choice question 27 from the 2018 Post Utme Wellspring University Commerce examination.

Post Utme Wellspring University 2018 Commerce Objective / Multiple Choice
Question 27 POST_UTME_WELLSPRING_UNIVERSITY • 2018 • COMMERCE • objective

A company is considering two different production processes for manufacturing a product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, what is the break-even point for each process?

Answer Options

Correct Answer A. Process A: 2000 units, Process B: 3000 units
B. Process A: 3000 units, Process B: 2000 units
C. Process A: 4000 units, Process B: 2500 units
D. Process A: 2500 units, Process B: 4000 units
Correct Answer
A
Correct Option:
Process A: 2000 units, Process B: 3000 units

About This Question

This is Post Utme Wellspring University 2018 Commerce Question 27. It is one of the objective questions from the 2018 Post Utme Wellspring University Commerce examination.

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