Waec Model Questions Vol1 2022 Commerce Question 6
Practice essay / theory question 6 from the 2022 Waec Model Questions Vol1 Commerce examination. This question covers Wholesale Ordering, Economic Order Quantity, Cash Discount, Distribution Strategy .
A wholesale dealer buys a generic electronic component from a manufacturer at ₦20,000 per unit. The dealer incurs a flat shipping charge of ₦30,000 for each order placed and a storage cost of ₦150 per unit per month. The annual demand for the component is 12,000 units (approximately 1,000 units each month). The dealer’s ordering cost is therefore ₦30,000 per order. The holding cost is calculated as 20 % of the unit purchase price per year. The dealer also offers a 2 % cash discount to retailers who settle their invoices within 10 days; otherwise payment is due in 30 days.
Question Parts
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 AnswerAbout This Question
This is Waec Model Questions Vol1 2022 Commerce Question 6. It is one of the essay questions from the 2022 Waec Model Questions Vol1 Commerce examination.
The question covers Wholesale Ordering, Economic Order Quantity, Cash Discount, Distribution Strategy .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.