Gce Model Questions Vol1 2017 Commerce Question 11
Practice objective / multiple choice question 11 from the 2017 Gce Model Questions Vol1 Commerce examination.
A Nigerian exporter sells goods priced in US dollars. The invoice amount is $12,000. The buyer pays in naira through a bank that charges a commission of 2 % on the converted amount. The prevailing spot exchange rate is ₦410 per US $, but the bank offers a discount of 1.5 % on the spot rate for the portion of the payment that exceeds $5,000. The goods have insurance of $300 and freight of $800, and a 10 % import duty is levied on the CIF value (cost + insurance + freight). The exporter wishes to earn a profit margin of 12 % on the total landed cost (CIF + duty). What is the minimum amount in naira that the buyer must pay to achieve the exporter's target profit?
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About This Question
This is Gce Model Questions Vol1 2017 Commerce Question 11. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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