Waec Model Questions Vol1 2025 Economics Question 34

Practice objective / multiple choice question 34 from the 2025 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 34 WAEC_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

A bakery has fixed costs of ₦120,000 per month and a variable cost of ₦250 per loaf. Currently it sells each loaf for ₦400 and sells 1,200 loaves per month. Management is considering raising the price to ₦450, expecting a 10 % fall in the quantity sold. (i) Compute the new break‑even quantity after the price change. (ii) Determine the monthly profit after the price change and state whether profit increases compared with the present situation. Give all monetary values in naira.

Answer Options

A. Break‑even quantity = 500 loaves; Profit after price increase = ₦84,000 (higher than before)
B. Break‑even quantity = 600 loaves; Profit after price increase = ₦96,000 (lower than before)
C. Break‑even quantity = 700 loaves; Profit after price increase = ₦108,000 (higher than before)
Correct Answer D. Break‑even quantity = 600 loaves; Profit after price increase = ₦96,000 (higher than before)
Correct Answer
D
Correct Option:
Break‑even quantity = 600 loaves; Profit after price increase = ₦96,000 (higher than before)

About This Question

This is Waec Model Questions Vol1 2025 Economics Question 34. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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