POST UTME REDEEMERS UNIVERSITY 2018 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company is considering the introduction of a new product line. The product has a high fixed cost of ₦500,000 and a variable cost of ₦200 per unit. The selling price of the product is ₦300 per unit. If the company expects to sell 2,000 units, what is the minimum price at which the product must be sold to break even?
Question 2
A company has two branches, one in Lagos and one in Abuja. The Lagos branch has a sales revenue of ₦10 million and a cost of ₦5 million, while the Abuja branch has a sales revenue of ₦8 million and a cost of ₦4 million. What is the total profit of the company?
Question 3
A company's articles of association is a document that outlines the rules and regulations of the company. Which of the following is NOT a part of the articles of association?
Question 4
A bank offers a loan of ₦1 million to a customer at an interest rate of 15% per annum. The loan is repayable in 5 years. What is the total amount the customer will pay to the bank at the end of the loan period?
Question 5
A company's warehouse has a capacity of 10,000 units. If the current stock level is 8,000 units, what is the percentage of the warehouse that is currently occupied?
Question 6
A firm has the following production function: Q = 2L + 3K, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm wants to produce 10 units of the product, and it has 3 labor units and 2 capital units available, what is the opportunity cost of using the last labor unit?
Question 7
A company's sole trader is considering the purchase of a new warehouse to store its inventory. The warehouse has a capacity of 10,000 units and costs ₦5 million to purchase. The company's current warehouse has a capacity of 5,000 units and costs ₦2 million to rent. If the company expects to increase its sales by 20% in the next year, what is the minimum amount of money the company should save each month to afford the new warehouse?
Question 8
A firm's break-even point is the point at which its total revenue equals its
Question 9
A firm's revenue function is given by R = 100Q - 2Q^2, where R is revenue and Q is output. If the firm wants to maximize revenue, what is the optimal level of output?
Question 10
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
Question 11
A consumer purchases a product for ₦5,000 and pays a 5% sales tax. What is the amount of sales tax paid?
Question 12
A warehouse management system involves inventory control, order processing, and shipping. Which of the following is a benefit of using a warehouse management system?
Question 13
A warehouse is a facility used for storing goods. Which of the following is NOT a type of warehouse?
Question 14
A firm's cost function is given by C = 100 + 2L + 3K, where C is cost, L is labor, and K is capital. If the firm wants to minimize cost while producing 100 units of output, what is the optimal combination of labor and capital?
Question 15
A bank's primary function is to act as a financial intermediary. Which of the following is NOT a function of a bank?
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