Neco Model Questions Vol1 2019 Geography Question 46

Practice objective / multiple choice question 46 from the 2019 Neco Model Questions Vol1 Geography examination.

Neco Model Questions Vol1 2019 Geography Objective / Multiple Choice Hard Difficulty
Question 46 NECO_MODEL_QUESTIONS_VOL1 • 2019 • GEOGRAPHY • objective

The factory sells each unit at \(\text{₦}500\). Its current monthly production is \(2\,500\) units. Fixed monthly cost is \(\text{₦}200\,000\). Variable cost per unit consists of labour \(30\%\) of the variable cost and material \(70\%\). The profit per unit is \(\text{₦}150\). The factory is considering adding a second shift, which would increase production by \(40\%\) and raise the labour cost per unit by \(20\%\) (material cost per unit remains unchanged). Assuming the selling price per unit stays at \(\text{₦}500\), determine the new monthly profit and state whether it is at least \(15\%\) higher than the current profit (answer Yes or No).

Answer Options

A. ₦470 000; Yes
B. ₦451 500; No
C. ₦420 000; No
Correct Answer D. ₦451 500; Yes
Correct Answer
D
Correct Option:
₦451 500; Yes

About This Question

This is Neco Model Questions Vol1 2019 Geography Question 46. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Geography examination.

Difficulty level: Hard .

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