Gce Model Questions Vol1 2017 Commerce Question 5

Practice essay / theory question 5 from the 2017 Gce Model Questions Vol1 Commerce examination. This question covers Retail Trade .

Gce Model Questions Vol1 2017 Commerce Essay / Theory
Topic: Retail Trade
Question 5 GCE_MODEL_QUESTIONS_VOL1 • 2017 • COMMERCE • essay

A retailer purchases a stock of a single product and incurs various costs. The retailer buys 500 units at a purchase price of ₦1,200 per unit. In addition, the retailer incurs variable overheads of ₦200 per unit (packaging, utilities) and fixed overheads of ₦150,000 per month (rent, salaries). The retailer wishes to earn a profit of ₦200,000 in the month.

Question Parts

( a )
Determine the selling price per unit that the retailer must charge to achieve the desired profit, assuming all 500 units are sold.
( b )
The retailer decides to offer a 10 % discount on the selling price for any customer who purchases 100 units or more. If the retailer sells exactly 100 units at the discounted price and the remaining 400 units at the full selling price, calculate the profit actually earned.
( c )
Comment briefly on whether the retailer meets the original profit target and suggest one alternative strategy to improve profit.

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About This Question

This is Gce Model Questions Vol1 2017 Commerce Question 5. It is one of the essay questions from the 2017 Gce Model Questions Vol1 Commerce examination.

The question covers Retail Trade .

View More Gce Model Questions Vol1 2017 Commerce Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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