Waec Model Questions Vol1 2019 Commerce Question 3

Practice essay / theory question 3 from the 2019 Waec Model Questions Vol1 Commerce examination. This question covers Home Trade .

Waec Model Questions Vol1 2019 Commerce Essay / Theory

Topic: Home Trade

Question 3 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • COMMERCE • essay

A small retail shop in Lagos deals in the sale of electronic accessories. During the month of June, the shop recorded the following data: - Opening stock: 150 units valued at ₦30,000 - Purchases: 500 units costing ₦120,000 in total - Closing stock: 180 units valued at ₦36,000 - Selling price per unit: ₦350 - Expenses incurred: * Rent: ₦20,000 * Salaries: ₦45,000 * Utilities: ₦5,000 * Advertising: ₦8,000 Using this information, answer the questions that follow.

Question Parts

( a )

Calculate the Cost of Goods Sold (COGS) for the month.

( b )

Determine the gross profit for the month.

( c )

Calculate the net profit after deducting all expenses.

( d )

The owner wishes to achieve a net profit margin of at least 15 % of sales. Assuming the sales volume (470 units) remains unchanged and all other costs stay the same, by how much should the selling price per unit be increased?

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About This Question

This is Waec Model Questions Vol1 2019 Commerce Question 3. It is one of the essay questions from the 2019 Waec Model Questions Vol1 Commerce examination.

The question covers Home Trade .

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