Waec Model Questions Vol1 2018 Commerce Question 25

Practice objective / multiple choice question 25 from the 2018 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2018 Commerce Objective / Multiple Choice Medium Difficulty
Question 25 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • objective

A retailer purchases 200 identical items for a total of ₦1,200,000. He intends to apply a markup of 30% on the cost price to set the initial selling price. During a promotional period he offers a 12% discount on this selling price for all items sold. A sales tax of 5% is then added to the discounted price at the point of sale. Determine the final price a customer pays for one item during the promotion, and compute the retailer's net profit per item after accounting for the tax (assume the tax is remitted to the government and does not form part of profit). Provide the final price and the net profit per item.

Answer Options

Correct Answer A. Final price ₦7207, profit per item ₦864
B. Final price ₦7350, profit per item ₦900
C. Final price ₦6864, profit per item ₦864
D. Final price ₦7207, profit per item ₦1207
Correct Answer
A
Correct Option:
Final price ₦7207, profit per item ₦864

About This Question

This is Waec Model Questions Vol1 2018 Commerce Question 25. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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