Gce Model Questions Vol1 2018 Commerce Question 29

Practice objective / multiple choice question 29 from the 2018 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2018 Commerce Objective / Multiple Choice Medium Difficulty
Question 29 GCE_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • objective

A firm plans to import 10,000 units of a product. The FOB price is \(\$2\) per unit and shipping & insurance add \(\$0.30\) per unit. The exchange rate is \(\text{N}350\) per \(\$1\). A 12% ad valorem tariff is applied on the CIF value for the first 6,000 units, together with a specific duty of \(\text{N}5\) per unit. Units above the quota attract a 20% ad valorem tariff plus the same specific duty. Calculate the total Naira cost of importing the full 10,000 units. If the domestic selling price is \(\text{N}800\) per unit, determine the profit or loss per unit when all imported units are sold.

Answer Options

A. Total cost = \(N9{,}500{,}000\); Loss per unit = \(N150.00\)
B. Total cost = \(N9{,}200{,}000\); Loss per unit = \(N124.00\)
C. Total cost = \(N9{,}323{,}600\); Loss per unit = \(N120.00\)
Correct Answer D. Total cost = \(\text{N}9{,}323{,}600\); Loss per unit = \(\text{N}132.36\)
Correct Answer
D
Correct Option:
Total cost = \(\text{N}9{,}323{,}600\); Loss per unit = \(\text{N}132.36\)

About This Question

This is Gce Model Questions Vol1 2018 Commerce Question 29. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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