Waec Model Questions Vol1 2018 Commerce Question 6

Practice essay / theory question 6 from the 2018 Waec Model Questions Vol1 Commerce examination. This question covers Wholesale Trade .

Waec Model Questions Vol1 2018 Commerce Essay / Theory
Topic: Wholesale Trade
Question 6 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • essay

A wholesaler purchases a product from a manufacturer at ₦1,200 per unit and pays a freight charge of ₦150 per unit. The wholesaler sells the product to retailers at a selling price of ₦1,800 per unit. Fixed overheads amount to ₦120,000 per month and a variable overhead of ₦50 is incurred for each unit handled. Retailers are allowed a 2% cash‑payment discount if they settle their invoices within 30 days.

Question Parts

( a )
Calculate the landed cost per unit for the wholesaler.
( b )
Determine the gross profit margin percentage based on the selling price.
( c )
If a retailer takes the 2% discount, compute the effective profit margin percentage for the wholesaler after the discount.
( d )
Using the data above, find the break‑even quantity of units per month for the wholesaler.
( e )
The wholesaler is considering raising the selling price by 5% but expects a 10% fall in sales volume. Assuming the current monthly sales volume is 4,000 units, decide whether the proposed change will increase or decrease monthly profit and show the calculation.

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About This Question

This is Waec Model Questions Vol1 2018 Commerce Question 6. It is one of the essay questions from the 2018 Waec Model Questions Vol1 Commerce examination.

The question covers Wholesale Trade .

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