Waec Model Questions Vol1 2022 Commerce Question 4
Practice essay / theory question 4 from the 2022 Waec Model Questions Vol1 Commerce examination. This question covers Foreign Trade, Costing, Exchange rates, Tariffs, Profit analysis .
A Nigerian firm imports cocoa beans from Ghana and exports processed cocoa powder to Europe. The following data apply:\n\n- Purchase price of cocoa beans: 1,200 Ghana cedis (GHS) per tonne.\n- Exchange rate: 1 GHS = ₦45.\n- Freight and insurance on import (CIF): ₦30,000 per tonne.\n- Import tariff: 5 % ad valorem on the CIF value.\n- Domestic processing cost: ₦15,000 per tonne of beans.\n- Processing loss: 1 tonne of beans yields 0.8 tonne of cocoa powder.\n- Export price of cocoa powder: €1,800 per tonne (FOB).\n- Exchange rate: €1 = ₦560.\n- Export freight: ₦40,000 per tonne of powder.\n- Export duty: 2 % of the FOB value.
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This is Waec Model Questions Vol1 2022 Commerce Question 4. It is one of the essay questions from the 2022 Waec Model Questions Vol1 Commerce examination.
The question covers Foreign Trade, Costing, Exchange rates, Tariffs, Profit analysis .
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