Gce Model Questions Vol1 2018 Commerce Question 41
Practice objective / multiple choice question 41 from the 2018 Gce Model Questions Vol1 Commerce examination.
An exporter intends to sell \(5{,}000\) kg of cocoa. He must quote a price in US dollars per kilogram. The contract is payable in Naira. At the time of shipment the exchange rate is \(₦425\) per US\$, and a \(5\%\) export duty is levied on the Naira value of the invoice. The exporter's total cost for the cocoa is \(₦1{,}800{,}000\) and he wants a profit of \(12\%\) on this cost. What minimum price in US\$ per kilogram should he quote to meet his profit target? Give your answer to three decimal places.
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About This Question
This is Gce Model Questions Vol1 2018 Commerce Question 41. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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