Gce Model Questions Vol1 2017 Commerce Question 6
Practice essay / theory question 6 from the 2017 Gce Model Questions Vol1 Commerce examination. This question covers Wholesale Trade .
A wholesaler purchases a single product from a manufacturer and sells it to retailers. The wholesaler buys 2,000 units at a list price of ₦800 per unit and receives a trade discount of 5 % from the manufacturer. Variable costs incurred by the wholesaler amount to ₦150 per unit (transport, handling). Fixed costs for the month total ₦120,000. The wholesaler sets a standard selling price of ₦1,200 per unit for retailers and offers a cash discount of 2 % if payment is made within 10 days; otherwise the full price is payable on the 30‑day credit term. Assume the wholesaler sells 1,000 units in the month and that 60 % of the retailers take the cash discount.
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This is Gce Model Questions Vol1 2017 Commerce Question 6. It is one of the essay questions from the 2017 Gce Model Questions Vol1 Commerce examination.
The question covers Wholesale Trade .
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