Waec Model Questions Vol1 2018 Commerce Question 5

Practice essay / theory question 5 from the 2018 Waec Model Questions Vol1 Commerce examination. This question covers Retail Trade .

Waec Model Questions Vol1 2018 Commerce Essay / Theory

Topic: Retail Trade

Question 5 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • essay

A retailer deals in a single product. The cost price of each unit is ₦1,500. The retailer marks the product at a selling price of ₦2,100 and during a promotional period offers a discount of 10% on the marked price. In addition, the retailer incurs a handling cost of ₦200 per unit sold. Fixed operating costs amount to ₦250,000 per month. The retailer sold 2,000 units in the month and the average inventory (valued at cost) was ₦500,000.

Question Parts

( a )

Calculate the markup percentage based on the cost price.

( b )

Determine the net selling price after the 10% discount and state the profit margin percentage (profit per unit expressed as a percentage of the net selling price).

( c )

Using the information above, compute the break‑even quantity of units for the month. (Round up to the nearest whole unit.)

( d )

Calculate the stock‑turnover ratio for the month (Cost of Goods Sold ÷ Average Inventory).

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 Answer

About This Question

This is Waec Model Questions Vol1 2018 Commerce Question 5. It is one of the essay questions from the 2018 Waec Model Questions Vol1 Commerce examination.

The question covers Retail Trade .

View More Waec Model Questions Vol1 2018 Commerce Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows

Chat with Support