Waec Model Questions Vol1 2023 Commerce Question 5

Practice essay / theory question 5 from the 2023 Waec Model Questions Vol1 Commerce examination. This question covers Retail Trade, Pricing, Discounts, Break‑even analysis .

Waec Model Questions Vol1 2023 Commerce Essay / Theory

Topics: Retail Trade Pricing Discounts Break‑even analysis

Question 5 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • COMMERCE • essay

A retail shop sells a single type of T‑shirt. The cost price per T‑shirt is ₦2,500. The shop applies a markup of 40 % on the cost price to set its list price. A seasonal discount of 10 % is offered on the list price. The shop’s fixed monthly overheads amount to ₦150,000 and the variable overhead per unit sold (packaging, tags, etc.) is ₦200.

Question Parts

( a )

Calculate the list price of one T‑shirt before discount.

( b )

Determine the selling price after the 10 % discount is applied.

( c )

Find the contribution margin per T‑shirt (selling price minus total variable cost).

( d )

Calculate the minimum number of T‑shirts that must be sold in a month to cover the fixed overheads (break‑even quantity).

( e )

Briefly evaluate whether offering the 10 % discount is advisable for the shop, considering the break‑even result.

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About This Question

This is Waec Model Questions Vol1 2023 Commerce Question 5. It is one of the essay questions from the 2023 Waec Model Questions Vol1 Commerce examination.

The question covers Retail Trade, Pricing, Discounts, Break‑even analysis .

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