Waec Model Questions Vol1 2022 Commerce Question 2

Practice essay / theory question 2 from the 2022 Waec Model Questions Vol1 Commerce examination. This question covers Trade, Cost and Revenue, Profit Analysis, Risk Management .

Waec Model Questions Vol1 2022 Commerce Essay / Theory
Topics: Trade Cost and Revenue Profit Analysis Risk Management
Question 2 WAEC_MODEL_QUESTIONS_VOL1 • 2022 • COMMERCE • essay

A trader in Lagos imports 500 kg of cocoa beans at ₦150 per kilogram. Freight charges amount to ₦10 000, insurance costs ₦5 000 and the beans are sold at ₦200 per kilogram. The trader gives a 5 % discount on the total sales invoice to a wholesaler and incurs selling expenses of ₦8 000.

Question Parts

( a )
Calculate the trader’s gross profit before discount and selling expenses.
( b )
After giving the 5 % discount and deducting the selling expenses, determine the net profit and the profit‑margin percentage (net profit ÷ net sales × 100).
( c )
Explain how fluctuations in world cocoa prices could affect the trader’s business.
( d )
Suggest two practical strategies the trader can adopt to mitigate the risk arising from price volatility.

Detailed Solution & Marking Scheme

Get the step-by-step solution, key points required by examiners and detailed marking guidance through the Edcrib AI Tutor.

Reveal Answer

About This Question

This is Waec Model Questions Vol1 2022 Commerce Question 2. It is one of the essay questions from the 2022 Waec Model Questions Vol1 Commerce examination.

The question covers Trade, Cost and Revenue, Profit Analysis, Risk Management .

View More Waec Model Questions Vol1 2022 Commerce Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support