Waec Model Questions Vol1 2023 Commerce Question 6

Practice essay / theory question 6 from the 2023 Waec Model Questions Vol1 Commerce examination. This question covers Wholesale Trade, Pricing, Trade Discount, Break‑even analysis, Credit terms .

Waec Model Questions Vol1 2023 Commerce Essay / Theory

Topics: Wholesale Trade Pricing Trade Discount Break‑even analysis Credit terms

Question 6 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • COMMERCE • essay

A wholesaler purchases 500 units of a product at ₦1,200 each. Freight and handling cost ₦30 per unit. The wholesaler adds a markup of 25 % on the total cost per unit to set its list price. A trade discount of 5 % is offered to retailers who pay within 30 days; otherwise the full list price is payable in 60 days. Fixed monthly operating expenses are ₦80,000.

Question Parts

( a )

Determine the total cost per unit (purchase price plus freight and handling).

( b )

Calculate the list price per unit after applying the 25 % markup.

( c )

Find the cash price per unit after the 5 % trade discount.

( d )

Compute the contribution margin per unit using the cash price.

( e )

Determine the break‑even quantity of units the wholesaler must sell each month.

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About This Question

This is Waec Model Questions Vol1 2023 Commerce Question 6. It is one of the essay questions from the 2023 Waec Model Questions Vol1 Commerce examination.

The question covers Wholesale Trade, Pricing, Trade Discount, Break‑even analysis, Credit terms .

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