Gce Model Questions Vol1 2017 Commerce Question 13
Practice objective / multiple choice question 13 from the 2017 Gce Model Questions Vol1 Commerce examination.
A retailer purchases 500 units of a product for a total cost of ₦120,000. Fixed overheads for the month are ₦30,000 and variable overhead is ₦20 per unit sold. The retailer wants a profit margin of 25 % on total revenue. Market research shows that if the selling price exceeds ₦350 per unit, sales will fall to 400 units; otherwise all 500 units are expected to sell. Determine the optimal selling price per unit and the expected profit, stating which sales scenario should be chosen.
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About This Question
This is Gce Model Questions Vol1 2017 Commerce Question 13. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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