Bece Model Questions Vol1 2021 Business Studies Question 2

Practice practical question 2 from the 2021 Bece Model Questions Vol1 Business Studies examination. This question covers Office Practice .

Bece Model Questions Vol1 2021 Business Studies Practical
Topic: Office Practice
Question 2 BECE_MODEL_QUESTIONS_VOL1 • 2021 • BUSINESS_STUDIES • practical

A small retail shop needs to replenish its office supplies. The shop manager prepares a purchase order based on the price schedule supplied by the supplier. Price schedule: - Ballpoint pens: ₦120 each - Notebooks: ₦350 each - Ink cartridge: ₦2,500 each Discount policy: - 5 % discount on the total invoice before tax if the invoice value exceeds ₦20,000. - 10 % discount if the invoice value exceeds ₦35,000. VAT of 7.5 % is charged on the amount after any discount. The manager estimates the shop will need 150 pens, 80 notebooks and 4 ink cartridges. Answer the following questions.

Question Parts

( a )
Calculate the total amount payable before any discount is applied.
( b )
Determine the discount rate that applies and compute the amount after discount.
( c )
Compute the VAT payable on the discounted amount and state the final amount the shop must pay.
( d )
The manager is considering ordering an additional 50 pens to reach the next discount threshold. Re‑calculate the final amount if the extra pens are ordered and advise whether the extra pens should be ordered.

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About This Question

This is Bece Model Questions Vol1 2021 Business Studies Question 2. It is one of the practical questions from the 2021 Bece Model Questions Vol1 Business Studies examination.

The question covers Office Practice .

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