Gce Model Questions Vol1 2018 Commerce Question 33

Practice objective / multiple choice question 33 from the 2018 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2018 Commerce Objective / Multiple Choice Hard Difficulty
Question 33 GCE_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • objective

ABC Traders issues a proforma invoice for \(150\) units of product X at a unit price of \(\text{₦}2{,}500\). The invoice provides a \(12\%\) trade discount on the total, and a cash discount of \(2\%\) on the balance if payment is made within 10 days. VAT at \(7.5\%\) is then applied to the amount after discounts. The buyer's cost price per unit is \(\text{₦}1{,}800\). (a) Calculate the amount payable by the buyer if the cash discount is taken. (b) Determine the gross profit margin percentage on the transaction (based on the selling price before VAT).

Answer Options

A. (a) \(\text{₦}350{,}000\); (b) \(15\%\) profit margin
B. (a) \(\text{₦}345{,}000\); (b) \(17\%\) profit margin
Correct Answer C. (a) \(\text{₦}347{,}655\); (b) \(16.5\%\) profit margin
D. (a) \(\text{₦}348{,}500\); (b) \(14.8\%\) profit margin
Correct Answer
C
Correct Option:
(a) \(\text{₦}347{,}655\); (b) \(16.5\%\) profit margin

About This Question

This is Gce Model Questions Vol1 2018 Commerce Question 33. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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