Gce Model Questions Vol1 2022 Agricultural Science Question 26

Practice objective / multiple choice question 26 from the 2022 Gce Model Questions Vol1 Agricultural Science examination.

Gce Model Questions Vol1 2022 Agricultural Science Objective / Multiple Choice Medium Difficulty
Question 26 GCE_MODEL_QUESTIONS_VOL1 • 2022 • AGRICULTURAL_SCIENCE • objective

A farm produces tomatoes. Fixed costs are \(N30{,}000\). The variable cost is \(N40\) per kg and the selling price is \(N70\) per kg. After adopting a new fertilizer the variable cost falls by 10% and the market price falls by 5%. Using break‑even analysis, determine the new break‑even quantity (in kg) and state how many kilograms less than the original break‑even quantity this represents.

Answer Options

Correct Answer A. New break‑even quantity ≈ 984 kg; this is 16 kg less than the original break‑even quantity.
B. New break‑even quantity ≈ 985 kg; this is 15 kg less than the original break‑even quantity.
C. New break‑even quantity ≈ 990 kg; this is 10 kg less than the original break‑even quantity.
D. New break‑even quantity ≈ 970 kg; this is 30 kg less than the original break‑even quantity.
Correct Answer
A
Correct Option:
New break‑even quantity ≈ 984 kg; this is 16 kg less than the original break‑even quantity.

About This Question

This is Gce Model Questions Vol1 2022 Agricultural Science Question 26. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Agricultural Science examination.

Difficulty level: Medium .

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