Neco 2020 Agricultural Science Question 28

Practice objective / multiple choice question 28 from the 2020 Neco Agricultural Science examination.

Neco 2020 Agricultural Science Objective / Multiple Choice Medium Difficulty
Question 28 NECO • 2020 • AGRICULTURAL_SCIENCE • objective

A small poultry farm incurs fixed costs of \(\₦150,000\) per month (housing, equipment). Variable cost per hen per month is \(\₦200\). Each hen lays on average 20 eggs per month and each egg sells for \(\₦30\).\n\n(a) How many hens must the farmer keep to **break even** (total revenue = total cost)?\n(b) If the farmer keeps 120 hens and the market price of an egg falls to \(\₦25\), what is the resulting profit (or loss) for the month?

Answer Options

A. Break‑even: 350 hens; profit with 120 hens at \\₦25 per egg: -\\₦120,000 (loss)
B. Break‑even: 400 hens; profit with 120 hens at \\₦25 per egg: -\\₦108,000 (loss)
C. Break‑even: 375 hens; profit with 120 hens at \\₦25 per egg: \\₦6,000 (profit)
Correct Answer D. Break‑even: 375 hens; profit with 120 hens at \₦25 per egg: -\₦114,000 (loss)
Correct Answer
D
Correct Option:
Break‑even: 375 hens; profit with 120 hens at \₦25 per egg: -\₦114,000 (loss)

About This Question

This is Neco 2020 Agricultural Science Question 28. It is one of the objective questions from the 2020 Neco Agricultural Science examination.

Difficulty level: Medium .

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