Waec Model Questions Vol1 2024 Commerce Question 4

Practice essay / theory question 4 from the 2024 Waec Model Questions Vol1 Commerce examination. This question covers Foreign Trade .

Waec Model Questions Vol1 2024 Commerce Essay / Theory

Topic: Foreign Trade

Question 4 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • COMMERCE • essay

TrendWear Ltd. plans to import 5,000 m of high‑quality cotton fabric from Bangladesh. The FOB price is US$3.20 per metre, the exchange rate is ₦460 per US$, sea freight is US$0.45 per metre, import duty is 5 % of the CIF value, and a surcharge of 2 % is levied on the duty amount. The firm expects to sell the finished garments at a wholesale price of ₦4,800 per metre of fabric used.

Question Parts

( a )

Compute the total landed cost per metre of fabric in Naira, showing all steps (FOB conversion, freight, duty, surcharge).

( b )

Determine the gross profit per metre of fabric and state the profit‑margin percentage.

( c )

If the Naira depreciates to ₦500 per US$ after the contract is signed but before payment, recalculate the landed cost per metre and discuss the impact on profitability.

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About This Question

This is Waec Model Questions Vol1 2024 Commerce Question 4. It is one of the essay questions from the 2024 Waec Model Questions Vol1 Commerce examination.

The question covers Foreign Trade .

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