Waec Model Questions Vol1 2021 Commerce Question 3

Practice essay / theory question 3 from the 2021 Waec Model Questions Vol1 Commerce examination. This question covers Home Trade, Inventory Management, Pricing Strategies, Profit Analysis .

Waec Model Questions Vol1 2021 Commerce Essay / Theory
Topics: Home Trade Inventory Management Pricing Strategies Profit Analysis
Question 3 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • COMMERCE • essay

A small retailer in Lagos purchases a batch of 500 units of a popular electronic gadget at a total cost of ₦750,000. The retailer plans to sell the gadgets in three phases:

Question Parts

( a )
If the retailer intends to apply a markup of 40 % on the unit cost for the first 200 units, calculate the selling price per unit for these 200 units and the total revenue expected from this batch.
( b )
For the next 150 units the retailer offers a promotional discount of 10 % on the selling price calculated in part (a). Determine the discounted selling price per unit and the revenue generated from these 150 units.
( c )
The remaining 150 units are sold at a price that yields an overall gross profit margin of 25 % on the whole batch of 500 units. Find the required selling price per unit for these last 150 units. Then, discuss briefly how the retailer’s three‑phase pricing strategy affects cash flow and inventory turnover.

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About This Question

This is Waec Model Questions Vol1 2021 Commerce Question 3. It is one of the essay questions from the 2021 Waec Model Questions Vol1 Commerce examination.

The question covers Home Trade, Inventory Management, Pricing Strategies, Profit Analysis .

View More Waec Model Questions Vol1 2021 Commerce Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

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