Waec Model Questions Vol1 2021 Commerce Question 20

Practice objective / multiple choice question 20 from the 2021 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2021 Commerce Objective / Multiple Choice Medium Difficulty
Question 20 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • COMMERCE • objective

A wholesaler buys 500 units of a product for a total of ₦250,000. He incurs a fixed monthly overhead of ₦10,000. He sells to retailers using the following price schedule: up to 100 units - ₦600 per unit; 101 to 300 units - ₦570 per unit; above 300 units - ₦540 per unit. What is the minimum total number of units he must sell in a month to achieve a profit of at least ₦15,000 after covering the overhead? State the optimal allocation of units among the three price brackets that attains this profit with the fewest units sold.

Answer Options

A. 320 units; allocate 100 units at ₦600, 200 units at ₦570, and 20 units at ₦540.
B. 325 units; allocate 100 units at ₦600, 150 units at ₦570, and 75 units at ₦540.
Correct Answer C. 325 units; allocate 100 units at ₦600, 200 units at ₦570, and 25 units at ₦540.
D. 330 units; allocate 100 units at ₦600, 200 units at ₦570, and 30 units at ₦540.
Correct Answer
C
Correct Option:
325 units; allocate 100 units at ₦600, 200 units at ₦570, and 25 units at ₦540.

About This Question

This is Waec Model Questions Vol1 2021 Commerce Question 20. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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